Comments on: One of the Best Intraday SPY Rounded Reversal Examples http://blog.afraidtotrade.com/one-of-the-best-intraday-spy-rounded-reversal-examples/ Helping traders overcome fears and emotions in trading Thu, 09 Feb 2012 14:53:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Bob http://blog.afraidtotrade.com/one-of-the-best-intraday-spy-rounded-reversal-examples/comment-page-1/#comment-213412 Bob Sun, 22 Nov 2009 18:33:05 +0000 http://blog.afraidtotrade.com/?p=4965#comment-213412 Rounded reversals resolve in an interesting fashion. In this example, the curve, defined by drawing a line thru the lows, forms a bottom that rounds up. At the same time, price is getting squeezed to the downside by the EMA's. This results in a compressing of price and often a formation of a triangle-like pattern near the bottom of the curve. The potential energy that builds generally results in an explosive coiled spring break out; the result of a trendline break and the "popped stops" effect. <br><br>In longer term RR patterns, one often sees repeated attempts by price to round up. Failures can be identified by sudden fast price drops that yield new lows and an extension of the rounded reversal pattern. Such failures redefine the shape of the curve and set the stage for another attempted rally. After time has passed and wounds have healed, buyer's re-enter for another go. Rounded reversals resolve in an interesting fashion. In this example, the curve, defined by drawing a line thru the lows, forms a bottom that rounds up. At the same time, price is getting squeezed to the downside by the EMA's. This results in a compressing of price and often a formation of a triangle-like pattern near the bottom of the curve. The potential energy that builds generally results in an explosive coiled spring break out; the result of a trendline break and the “popped stops” effect.

In longer term RR patterns, one often sees repeated attempts by price to round up. Failures can be identified by sudden fast price drops that yield new lows and an extension of the rounded reversal pattern. Such failures redefine the shape of the curve and set the stage for another attempted rally. After time has passed and wounds have healed, buyer's re-enter for another go.

]]> By: Bob http://blog.afraidtotrade.com/one-of-the-best-intraday-spy-rounded-reversal-examples/comment-page-1/#comment-211345 Bob Sun, 22 Nov 2009 12:33:05 +0000 http://blog.afraidtotrade.com/?p=4965#comment-211345 Rounded reversals resolve in an interesting fashion. In this example, the curve, defined by drawing a line thru the lows, forms a bottom that rounds up. At the same time, price is getting squeezed to the downside by the EMA's. This results in a compressing of price and often a formation of a triangle-like pattern near the bottom of the curve. The potential energy that builds generally results in an explosive coiled spring break out; the result of a trendline break and the "popped stops" effect. <br><br>In longer term RR patterns, one often sees repeated attempts by price to round up. Failures can be identified by sudden fast price drops that yield new lows and an extension of the rounded reversal pattern. Such failures redefine the shape of the curve and set the stage for another attempted rally. After time has passed and wounds have healed, buyer's re-enter for another go. Rounded reversals resolve in an interesting fashion. In this example, the curve, defined by drawing a line thru the lows, forms a bottom that rounds up. At the same time, price is getting squeezed to the downside by the EMA's. This results in a compressing of price and often a formation of a triangle-like pattern near the bottom of the curve. The potential energy that builds generally results in an explosive coiled spring break out; the result of a trendline break and the “popped stops” effect.

In longer term RR patterns, one often sees repeated attempts by price to round up. Failures can be identified by sudden fast price drops that yield new lows and an extension of the rounded reversal pattern. Such failures redefine the shape of the curve and set the stage for another attempted rally. After time has passed and wounds have healed, buyer's re-enter for another go.

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