Continuation Reversal Patterns Continued

Bullish Consolidation Reversal

After a stock makes a significant decline, it is always healthy for the stock to consolidate sideways before continuing its decline. After this consolidation, you can clearly see where the stock has resistance. This line of resistance must not be penetrated upwards. If this line of resistance is violated, the weakness of the stock is in question and you would cover your short position and consider going long.

StockTeacher Method The Trend is Your Friend / 49

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