You and me both Linear regressions are 'faster' apparently, but i've never been able to make anything that 'works' from indicators like that. In answer to the OP, I have no idea whether it's a reversal or a pullback, and I have no idea how anyone would have the faintest clue....but that's just me
I have decided to listen to you, and talk about "trading". Can you elaborate a bit more on what you speak about, as in posting some charts to discuss, for everyone knows a picture says a thousand words. Surely it all depends on what market you are trading, as different markets are traded by different people, and some even by computers now! How can we generalize if things are not the same! I have just done a quick flick thru the pages, and did not see one chart posted! J_S
Here is my stab at it. Without getting into all sorts of stuff like definitions (which are important), or time frames (which are important), or context (which is vitally important), here is how I see it. The first illustration marks where price might be at the present, on the very tip of the black line. Now it appears that we can buy here and expect price to break the previous high and keep going higher since we think this is just a retracement or pullback in an uptrend. This wouldn't be a bad guess. But also note that if price in fact starts to drop right after our entry, then the point at which we entered was actually a lower high. So back to I think what schizo was originally saying, if we knew which of the two will happen, pullback or reversal, we would know how to play it.
Your post just made me realize I'm vastly underutilizing one of my filters. Thank you for posting. Many thumbs up!
I was thinking more along the lines of a real chart, such as this ES chart for today. The ES is the main chart for the US stock market, and as such will determine what most of the blue chip stocks will do. So, have we a reversal or a pullback? How do I know what to look at, and if I am even looking at the right thing? Text book stuff is one thing, live trading with real money is another thing entirely! J_S