Major reversals Long
Micro double bottom after a climax
Close retest of a sell-climax low. The second low attracts less selling and is rejected.
Read the sequence.
01 / OBSERVE → DECIDE
- ContextClose retest of a sell-climax low
- PressureThe second low attracts less selling and is rejected
- SetupClose retest of a sell-climax low. Require rejection or acceptance at the marked structure.
- DecisionBull trigger after the small double bottom
The decision map
02 / QUICK REFERENCE- Location
- Close retest of a sell-climax low.
- Evidence
- The second low attracts less selling and is rejected.
- Trigger
- Bull trigger after the small double bottom.
- Invalidation
- Failure of the second-low structure.
- First objective
- Nearby resistance or EMA area.
- Pass when
- Treating a visual double bottom as confirmation by itself.
03 / THE FULL ARGUMENT
Thesis & participant logic
Supplied study draft · adapted Brooks-style prose, not a quotation from Al Brooks
The market experienced a sell climax and bounced. Bears retested the low but failed to break it decisively, creating a micro double bottom. I will buy above the bull trigger only if the retest shows reduced selling pressure. My thesis is wrong below the second low. I will target the EMA or next resistance.
04 / FROM IDEA TO A PLAN
Manage the thesis, not the need to be right.
Before entry
Write the structural invalidation and first realistic objective. Size to the loss you have already accepted, including costs and possible slippage. If the stop is unaffordable, reduce size or pass.
After entry
Reassess follow-through against the evidence above. Do not widen the stop or add because price “has gone too far.” A bounce to your average entry is not a market thesis.
At the objective
Nearby resistance or EMA area. Decide ahead of time whether to exit or retain a defined remainder. Continue only while structure and follow-through support the trade.
During review
Record the entry-time chart, planned risk, maximum adverse excursion, actual exit, and whether the thesis was invalidated. Judge the decision separately from the outcome.