It is an OHLC Bar Reversal, either in the form of a BULLISH or BEARISH. It can happen over two periods or over few periods as a COMPLEX PIVOT POINT. Position in the trend where it happens is more important.
I am showing the BASIC PIVOT POINT REVERSAL below. There is a stronger reversal called KEY REVERSAL and even better one called ISLAND REVERSAL.
One may also utilise the similar candlestick reversal pattern or patterns.
The heavier the volume the better on it’s completion, but regardless of the volume which has no bearing on Pivot Point Reversal, PIVOT IS a PIVOT, and probably the most common two period reversal signal.
Are we in for a BULLISH PIVOT over the coming days or a KEY REVERSAL or a ISLAND REVERSAL ? It will be published if and when on hand.
Today’s upcoming bar/candle with XJO/XAO is likely to tell us that the BEAR has lost total control and commitment and may be lost in the woods over the coming days if and when we see a BULLISH PIVOT. But, we wait for a tape to tell give us the news.
What is a SELLING CLIMAX ? I would describe it as FLUSHING OUT of the WEAK HOLDER where SMART MONEY/BULL moves in with VENGEANCE. Beginning of the END perhaps.
Drawing a HORIZONTAL SUPPORT LINE from below the low of yesterday’s (12/09) bar with XJO/XAO and studying the price action behaviour BAR by BAR thereafter, may turn out to be a very educational exercise.There is a top educational material/information at the previous post and this one where one may not even learn 1/2 much on a paid TA course. Beware of some SHARKS out there ! There are some very good/top TA educators off course, but far and few in between in my experience.
Chart reading is an ART not a SCIENCE, I keep reminding myself.
I will cover the current XJO/XAO behaviour BAR by BAR at our next ATAA Wyckoff SIG meeting here in Melbourne, on 3rd of October, which is free for current paid ATAA members.
Simple form of BEARISH PIVOT ( top), and BULLISH PIVOT (bottom) are shown below.
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