This morning's action was far harder for me to read as it was quite choppy unlike recent days which have had a relatively good trend. I got a little confused/concerned as to which TLs were most important. There was a clear longer term UWTL and a clear shorter term DWTL too. However from watching the day develop I think price action itself is most important. For example there was a "M" formation at prior R which clearly had more power that the LT UWTL and eventually overpowered it. I am starting the reversals chapter in Brooks book so hope this will shed some light on it.
Summary: Having read some pages on Reversals today this reading was far from perfect, but I was at least wondering down the right path.
1. is an H1 is low probability so is untrade-able
2. is an L1 and marks the end of the 1st leg
3. H2 (MS2) but there's no meaningful TL break so is untrade-able
4. is an L2 and marks the end of the 2nd leg up
5. is an H3 (MS2) and can be traded after a clear TL break between H2 and H3
6. touches prior R
7. is an inside reversal bar and marks the end of the 3rd leg, which after such a strong development can now clearly be seen as 2 legs up. So 5 is renamed an (H2).
8. is an L3 scalp into TL
9. is an L4 but with no meaningful TL is untradeable and proably should not be seen as an L4
10. is an H3 after a TL so is tradeable.
11. (L1) is an L4 , but again with no meaningful TL break is untradeable
6-11 now complete a "M" = bias down. And Bar 10 now clearly ends the 1st leg down. So 11. is now renamed an L1.
12. is an H1/MS2 but with thebias down is untrade-able. it also ends the 2nd leg down.
13. is an L2 that is trade-able becasue a meaningful TL has broken. as Price is clearly in a LT range PT at next level of S = RRR 1 : 1.1 TSL
14. is an H2 scalp near D1 S back into 21EMA / DWTL = RRR1:0.5. 14 also ends the 3rd leg down but now on viewing the size of leg 3 compared to legs 1 &2 we can see that elgs 1&2 are really on choppy leg. so really 14 ends the 2nd leg down
15. is an L3 and because there was a meaningful TL break between L1 and L2 it was tradeable. with a TSL RRR 1: 3
Summary: Having read some pages on Reversals today this reading was far from perfect, but I was at least wondering down the right path.
1. is an H1 is low probability so is untrade-able
2. is an L1 and marks the end of the 1st leg
3. H2 (MS2) but there's no meaningful TL break so is untrade-able
4. is an L2 and marks the end of the 2nd leg up
5. is an H3 (MS2) and can be traded after a clear TL break between H2 and H3
6. touches prior R
7. is an inside reversal bar and marks the end of the 3rd leg, which after such a strong development can now clearly be seen as 2 legs up. So 5 is renamed an (H2).
8. is an L3 scalp into TL
9. is an L4 but with no meaningful TL is untradeable and proably should not be seen as an L4
10. is an H3 after a TL so is tradeable.
11. (L1) is an L4 , but again with no meaningful TL break is untradeable
6-11 now complete a "M" = bias down. And Bar 10 now clearly ends the 1st leg down. So 11. is now renamed an L1.
12. is an H1/MS2 but with thebias down is untrade-able. it also ends the 2nd leg down.
13. is an L2 that is trade-able becasue a meaningful TL has broken. as Price is clearly in a LT range PT at next level of S = RRR 1 : 1.1 TSL
14. is an H2 scalp near D1 S back into 21EMA / DWTL = RRR1:0.5. 14 also ends the 3rd leg down but now on viewing the size of leg 3 compared to legs 1 &2 we can see that elgs 1&2 are really on choppy leg. so really 14 ends the 2nd leg down
15. is an L3 and because there was a meaningful TL break between L1 and L2 it was tradeable. with a TSL RRR 1: 3
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