Bear market dynamics

[Xuanxue]

Quote from jack hershey:

In channels and with respect to their overlap, the overlap is always filled with a retrace. As overlap ends, then the reversal begins. Naturally, intermediate traders and above do the turn at the beginning of the retrace and hold through the end of the overlap to get the hign money velocity beginning of the reversal as overlap ends. All of this is done with certainty and no probability. A beginner can do it too as a forest level trade.

Great post. However it's always been my stance through observation and trading that overlaps (or in Elliotician parlance, over-throws) are a sign of trend strength. Which then would point to the subsequent reversal, as you mention, as corrective, heading into a reversal if opposed to the trend or a continuation of the trend if not.

A semantical difference, but a crucial one nonetheless.

Irrespective, again, a pleasing read. Thanks.