A "blow-off" move where the price goes too far, too fast, often overshooting a trend channel before snapping back. Wedge Reversals:
The resumption attempt fails, creating a higher high, lower high, double top, or double bottom. Al Brooks Trading Price Action Reversals Pdf Files
Understanding Al Brooks' Price Action Reversals: A Complete Guide A "blow-off" move where the price goes too
Closely spaced bars with nearly identical highs or lows that indicate a "floor" or "ceiling" has formed. Climax Reversals: creating a higher high
Reversal trading naturally wins less often than trend-continuation trading. However, when you catch a major trend reversal, the profit can be massive. You must be comfortable losing small amounts frequently to catch the big macro shifts.
