Trading MTR Tops: Video 38 A, B, C & D

Question 1

A Higher High Major trend reversal needs some evidence of strong bears.

Answer 1

Some evidence are:
Break below Bull Trend Line
Gap bars under Moving Average
After Gap Bars, the market often tries to form a Major Reversal

Question 2

Define gap Bar:

Answer 2

Gap between Moving Average and High of Bar

Question 3

In this example, in the blue, even though it was a bull micro-channel, the bull bars had bad follow-through. The rally is not as strong as one might think.

Answer 3

When the bars are weak like that, you probably have a leg up in wat will be a trading range, or a major trend reversal.
Anytime you have a double top, then a breakout that starts to reverse, it’s a wedge. You have three pushes up. Even thought it doesn’t look like a wedge.
When markets transition, they have component of both a bull and bear trend.
Many ways to draw wedges all closing at the same place.

Question 4

If not enough selling pressure, Bull Trend will not Reverse

Answer 4

In the photo, the reversals are minor and lead to a trading range or bull flag.
Here a trend resumption up is much more likely than trend reversal down.
20 gaps Bar buy set-up: Bull will buy the first touch of the moving average

Question 5

Al doesn’t like to short below bull bars. he likes to short at a bear bar closing on its low

Question 6

__% of the time when you trade major Trend Reversals you don’t get a swing trade. You get a small profit or small loss.

Answer 6

60%