The general rules in consolidation is to pay heed to the first trade event by a system and the first trend reversal event by a system. All other "events" are noise.
First trade event suggested a cover of the longs.
First trend event suggested a return to the Bear trend.
This all happening in consolidation. Need the following to occur to neutralize the suggestions.
Three consecutive closes outside the consolidation boundaries WITHOUT a returning close into the boundaries.
If the prices close OUT and then sell off the following day to close back in previous boundaries - all it has done is extend the consolidation range up to the new high.
This type of behaviour is what generates the bear/bull flag.
First trade event suggested a cover of the longs.
First trend event suggested a return to the Bear trend.
This all happening in consolidation. Need the following to occur to neutralize the suggestions.
Three consecutive closes outside the consolidation boundaries WITHOUT a returning close into the boundaries.
If the prices close OUT and then sell off the following day to close back in previous boundaries - all it has done is extend the consolidation range up to the new high.
This type of behaviour is what generates the bear/bull flag.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.