Weis Wave Strategy 2 - Trend Reversal
IMPORTANT NOTE : Smart Money needs time to reverse a trend because they need to absorb a large amount orders and if they do it fast they will be easily identified. Therefore, you have plenty of time to identify them, they will re trace and re test levels many times. These actions usually happen at tops or bottoms of significant levels and many times with false breaks.
Two Common Reversal Patterns
Trend Reversal - Pattern 1
High Volume Wave with the respective price wave move and immediate High Volume Wave in the opposite direction with price wave move and then retracing , retesting.
Trend Reversal - Pattern 2
High Volume Wave with the respective price wave move
High Volume Wave without the respective price move and a High Speed Index
Several High Speed Index when ranging for days because as we mentioned before they need to absorb a lot of orders
Sometimes False breaks
Finally a High Volume Wave in the opposite direction of the trend