A double wedge is simply two wedges that terminate at the same bar. In the chart above, it may be argued that there are two wedges W 6,24,52 and W 34,39,52 or other variant. A double wedge can lead to a large move (b63-b81).
For a double wedge to form, a pullback from a recent swing point (b24) needs to be deep enough that the next leg is likely to need multiple pushes to take out. A strong deep move (b24-33) consisting of CT bars may also demonstrate counter-trend strength that will encourage with-trend traders to exit and counter-trend traders to enter beyond the swing point (above b24).
What made you wait & take bar 13 and instead of bar 9 for the 1PB?
ReplyDeleteIn re-reading you Oct 6 commentary re traps, you mention "however, a reversal bar needs to dip beyond a prior swing to be valid--if not its just a range bar."
ReplyDeletecan you elaborate a bit. thanks much.
Omar, A possible reversal at b6 means you need to wait for a two legged 1PB.
ReplyDeleteJinJin, From Al Brooks book chapter 1, reversal bars need to dip below prior swing otherwise they are not reversing anything
Cad,
ReplyDeleteWhy did you not enter the W1P on b61? Why did you wait?
MG
Hi Cad, in your post about RVBs b6,15,33,39 would not have been valid RVBs, because they didn't dip beyond a prior swing?
ReplyDeleteOr does swing mean previous bar? Like not being inside bars?
Why isn't b6 the 1PB of the "gap move"?
ReplyDeleteTD, b15 is not a reversal bar, but the rest of them did take out prior swings: b3,28,34
ReplyDeleteb6 is indeed a 2L pb to the ema after a gap down. However, its likely to be just one leg and since its far from the ema, you would wait for at least another leg up.
MG, b58 was a possible 2L down to ema. A 2L PB to ema after a W is one of the "best trades" in Al Brooks book. In such cases, I usually take the second attempt.
ReplyDeleteHi Cad, The question below related to your post about RVBs (11/15). I just put it here because of JimJinNJs comment.
ReplyDeleteHi Cad, in your post about RVBs b6,15,33,39 would not have been valid RVBs, because they didn't dip beyond a prior swing?
Or does swing mean previous bar? Like not being inside bars?
Hi Cad, B6 was a L2 if one doesn't reset the count at the OB4. Is there a "hard fast rule" to distinguish legs from Hx/Lx in pullbacks (like b4 not being a bear bar)? I'm really struggling sometimes to distinguish between them.
ReplyDelete