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Old 03-31-2007, 05:41 PM
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POP & Reversal Setup

The chart below shows a fakeout at the R1 pivot line. Notice the long wick... price lifted because of the few bulls that held their mark at the 12470 level. As sellers stepped off the ask, price popped for a quick 20 points and then REVERSED. The last bulls became trapped in a false breakout move. Notice the lower volume on that test of high/new high. A complete rejection in price and lack of demand. These patterns are extremely powerful to trade in the opposite direction.

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File Type: jpg pop and reversal.jpg (89.8 KB, 158 views)

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