Fourth Buy Signal
The key level for the fourth buy signal is the high of the rally that set up the prior sell signal, not the secondary reaction high. The fourth buy signal is generated when a later rally breaks above the prior rally highs after the market…
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The key level for the fourth buy signal is the high of the rally that set up the prior sell signal, not the secondary reaction high. The fourth buy signal is generated when a later rally breaks above the prior rally highs after the market has broken below the secondary reaction lows. A new rally above the highs of the two-or-more-day rally preceding the sell signal reverses the prior sell signal. The fourth buy signal becomes relevant only after a classical sell signal has occurred.