A climax bar is a large bar on high volume at the end of an extended move. A true climax often turns into a crash after a weak pullback. Today's bar 19 was an exhaustion rather than a climax because of the following reasons:
- The move was large but not extended. The move from low of day was well within the average bar size of recent days.
- The pullback on b22,23 was rather strong
- The short signals on b20 and b24 did not have follow through
Despite the channel overshoot, it wasn't really a wedge since it was only two legs up for all practical purposes. All these meant an extended correction and the price was certain to test and try to break above b19. The Gap bar and a failed breakout of the trend bar from the BW pattern of b26-32 was the correct long entry to take. Those who missed it could also take the first A2 above ema at b52 or b54.
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