We are already equipped to deal with a move down with no congestions in between........we either drop down to the 15/20 and look for pivots or 2 bar method on 30.If we get a WRB after 4 bars down ie BAR 1,2,3,4 all bearish making LL-LH,BAR 5 is a big WRB.BAR 6 is a bullish bar.......not to go above the high of that bullish candle.Only on negation of that entire WRB ie reversals once the high of Bar 5 + room is taken out or if we get a pivot that is lower on the 15/20.
What we have been discussing all the while is about the WRB Breakout Pattern and how to deal with it.
Observation 1:A WRB breakout after a sideways congestion or pullback to new highs on high volumes must be followed by a continuation of that move.........if it doesn't,it is a Failed Breakout Pattern.
Observation 2:A WRB after many bars up(talking longs) on high volumes could signal the end of the trend.....the operative word being "could".......Reversal only on the negation of that WRB.If this negates that entire WRB and falls vertically from there, a possible "V" pattern move.
So,both are WRBs......2 different patterns.......one is a definite failed wrb breakout, the other is a possible V pattern move.
Saint
What we have been discussing all the while is about the WRB Breakout Pattern and how to deal with it.
Observation 1:A WRB breakout after a sideways congestion or pullback to new highs on high volumes must be followed by a continuation of that move.........if it doesn't,it is a Failed Breakout Pattern.
Observation 2:A WRB after many bars up(talking longs) on high volumes could signal the end of the trend.....the operative word being "could".......Reversal only on the negation of that WRB.If this negates that entire WRB and falls vertically from there, a possible "V" pattern move.
So,both are WRBs......2 different patterns.......one is a definite failed wrb breakout, the other is a possible V pattern move.
Saint
