medium · Volume Spread Analysis wyckoff-phases-schematics
A trader identifies a long-term bull market on a weekly chart. However, the daily chart shows an 'Up-Thrust' after a rally.
Following the fractal nature of markets, what is the most logical tactical approach?
- Treat the daily up-thrust as a short-term counter-trend opportunity while maintaining a bullish long-term bias.
- Immediately liquidate all long-term holdings as the daily up-thrust invalidates the weekly trend.
- Ignore the daily up-thrust entirely, as signals on lower timeframes are just 'noise' in a major bull market.
- Wait for a 'Selling Climax' on the intraday chart before re-entering the major trend.
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