Pull back or reversal?

Quote from OddTrader:

You supplied an answer on page 2, but people keep finding better solutions for another 9 pages. :D
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Finally I can see a clear and definitive answer on page 4.

http://elitetrader.com/vb/showthread.php?s=&threadid=37848&perpage=6&highlight=pullback&pagenumber=4

Quote from dbphoenix:

A "pullback" implies trend, so you need to have a clear definition of "trend" (not "trend channel", but "trend"). And since the trend would have to be in place in order for you to have a pullback/retracement, you have to decide where -- for you -- a trend begins.
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:confused:
 
What about gaps?..

if the stock fills the gap, is that a reversal, a pull back, or non of the above.

and are gaps considered a reversal? or just a temporary shift in supply/demand?

thanks

- Nathan
 
Quote from cashmoney69:

What about gaps?..

if the stock fills the gap, is that a reversal, a pull back, or non of the above.

and are gaps considered a reversal? or just a temporary shift in supply/demand?

thanks

- Nathan
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I believe your talking about something that requires a chart example because there can be different answers to your question.

I say the above because I've seen GAP fills be part of a reversal pattern and have seen pullbacks fill a gap without going much lower and still remain as a price pullback.

Regardless, if its involved with WRB's...its a shift in supply/demand.

Mark
 
Quote from cashmoney69:

Trading the right edge, how can you tell a pull back from a reversal?

Buying the pull back..or dip as they call it, can be profitable, but how can you tell if its a pull back or major selloff?

- nathan
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==============
As NasdaQQQ nickname said;
time

Lots of things help , amoung the most helpful also;
50 day moving average

Converging things reinforce it with force;
like more time [May June]below 50dma:cool: They reinforce its a reversal , a major sell off.

OCT also is known for major selloffs;
much of 4th quarter can be bullish, especially tek stocks.:cool:
 
Quote from cashmoney69:

Trading the right edge, how can you tell a pull back from a reversal?

Buying the pull back..or dip as they call it, can be profitable, but how can you tell if its a pull back or major selloff?

- nathan
More...


My motto is it's a "pull back if you make money and a reverse if you lose money"

rjv
 
Retracements usually happen on lower / decreasing volume. Reversals usually happen on higher / increasing volume.
Quote from cashmoney69:

Trading the right edge, how can you tell a pull back from a reversal?

Buying the pull back..or dip as they call it, can be profitable, but how can you tell if its a pull back or major selloff?

- nathan
More...
 
Quote from cashmoney69:

Trading the right edge, how can you tell a pull back from a reversal?

Buying the pull back..or dip as they call it, can be profitable, but how can you tell if its a pull back or major selloff?

- nathan
More...

Well, you can look at :

price : for example 3 long candlesticks indicates reversal, pullbacks should have smaller and smaller candlesticks
price-action before pullback : strong trend is best, I have backtested this. And... this is very important, you should look at the size of the last pullbacks. There is a rythm in all objects, but I will not tell here what it is. It's a hint to look at the 3 drive pattern.
volume : decreasing volume is good for pullback
leaders : SPX has leaders(semis, smallcaps, bank... breadth, bonds), BONDS has leaders, CRUDE OIL has leaders... etc
time : for example the market makes a 8 bar ab=cd -pullback and then stays at the same level for 2-4 bars then you know that times is running out and that this is probably going to be a reversal.

Tyren (designer of the Tyren wave system)
Norway
:)
 
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