A reversing market, with the reversal occurring near a support level or 50% retracement level.
Upon reversal through downward trend line
10% below reversal point
38% retracement level.
Watch for consolidation at this point and be prepared to trade Consolidation, Short...
Target is 3/8 above resistance level. Move stop up 1/8 once it reaches the 2/8 (1/4) level
** All percentages are based on the Previous High at 100%.
"Volume climaxes are beautiful patterns that are about 90% accurate in terms of predicting a reversal move tomorrow. ...It is interesting to note that stocks (or futures) that exhibit volume climaxes typically repeat the pattern a number of times."
Ed Downs
7 Chart Patterns That
Consistently Make Money