In the afternoon, I casually flipped through the book 'Advanced Reversal Technical Analysis' that I had before, and just happened to see the corner where,
"Bull markets reverse to bear markets, or bear markets reverse to bull markets."
1. Requirements: Clear trend exhaustion signals (such as being too far away, end-of-day acceleration, uncontrolled candlesticks), enhanced reverse momentum, failure of breakthroughs, etc.
2. Micro trend reversal:
Occurs on smaller level charts, usually a short-term correction within a larger trend.
Suitable for short-term traders to capture pullbacks.
3. Failed reversals:
False breakthroughs, false reversals, are one of the key points emphasized by Brooks.
Many reversals initially appear effective, but in reality, they are only temporary pauses in the trend.
Isn’t it similar to many existing market situations?