Pull back or reversal?

http://elitetrader.com/vb/showthread.php?s=&postid=580279&highlight=pullback#post580279

 

You supplied an answer on page 2, but people keep finding better solutions for another 9 pages.

 

Finally I can see a clear and definitive answer on page 4.

http://elitetrader.com/vb/showthread.php?s=&threadid=37848&perpage=6&highlight=pullback&pagenumber=4

 

What about gaps?..

if the stock fills the gap, is that a reversal, a pull back, or non of the above.

and are gaps considered a reversal? or just a temporary shift in supply/demand?

thanks

- Nathan

 

I believe your talking about something that requires a chart example because there can be different answers to your question.

I say the above because I've seen GAP fills be part of a reversal pattern and have seen pullbacks fill a gap without going much lower and still remain as a price pullback.

Regardless, if its involved with WRB's...its a shift in supply/demand.

Mark

 

==============
As NasdaQQQ nickname said;
time

Lots of things help , amoung the most helpful also;
50 day moving average

Converging things reinforce it with force;
like more time [May June]below 50dma They reinforce its a reversal , a major sell off.

OCT also is known for major selloffs;
much of 4th quarter can be bullish, especially tek stocks.

 

My motto is it's a "pull back if you make money and a reverse if you lose money"

rjv

 

If you have trouble with this question, lower your time frame so that you don't CARE about the difference.

 

Retracements usually happen on lower / decreasing volume. Reversals usually happen on higher / increasing volume.

 

Well, you can look at :

price : for example 3 long candlesticks indicates reversal, pullbacks should have smaller and smaller candlesticks
price-action before pullback : strong trend is best, I have backtested this. And... this is very important, you should look at the size of the last pullbacks. There is a rythm in all objects, but I will not tell here what it is. It's a hint to look at the 3 drive pattern.
volume : decreasing volume is good for pullback
leaders : SPX has leaders(semis, smallcaps, bank... breadth, bonds), BONDS has leaders, CRUDE OIL has leaders... etc
time : for example the market makes a 8 bar ab=cd -pullback and then stays at the same level for 2-4 bars then you know that times is running out and that this is probably going to be a reversal.

Tyren (designer of the Tyren wave system)
Norway