I don't think your reversal example was too bad - the little...

  1. 19,112 Posts.
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    I don't think your reversal example was too bad - the little tail is OK
    I just didn't want you mixing up timeframes too much without properly understanding the possible dangers of doing that.
    The volume was not really high, but was enough of an increase to suggest some (speculative) buying took place.
    It is a reversal of sorts, although not a perfect one, but in the real world 'text book perfect' is rare.
    Once price moved above the high of the initial down bar of the potential reversal, a positive influence was a chance to establish.
    The last bar on your chart was possibly some form of test, so the price action may continue to be positive (in that timeframe).
    So the potential strength may carry on a bit more yet, until some form of decent weakness arrives to end its influence.

    cheers

    .
    Last edited by Jako8557: 12/06/19
 
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