Large Price Move Ending Primary Trend
Primary trends conclude in many different ways. Some just fizzle out, others reverse suddenly, and some are clearly marked by a large price move. Figure 15.5 has an example of a chart with clear signals of the end of a primary trend, consisting of a three-point drop after a consistent run-up in price, and then a fix-point drop confirming that the bullish trend is over.
Figure 15.5 Large price decline ending primary trend (Chart courtesy of StockCharts.com)
The possibility that the drop in late July, 2014 was only a secondary trend or an extended retracement was present when it first occurred. However, ...
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