1-2-3 reversal
(as described by Vic Sperandeo
in "Trader
Vic: Methods of a Wall Street Master")1.
trend line broken
2. lower high in an uptrend, or a higher low in a downtrend.
3. break below the previous low in an uptrend, or above the previous high in a
downtrend
At point 3 the reversal is
confirmed and everybody's brother is getting short. A stop run often follows to
re-test the penetration at point 3. Quicker traders may get short at the X, or
even closer to the 2 based on other indicators (divergence, Fibonacci retracement,
Bollinger band touch, etc.)
Šthe material contained in this panel is
copyrighted by DaCharts.com
click chart to enlarge
 |
miracles,
they are everywhere.............. 