A good way how to know if a trend losing strength is to identify strength in a reversal.
Taken from Al Brooks book Reversal 500 pages with the topic REVERSAL .
Al Brooks books is a pain to read and understand but who saying knowledge coming easy ..
Under you find 24 different PRICE ACTION characteristic one a reversal ,,
You should have knowledge of every 24 point under and spot in one you chart .
How many you know of those you identify when you study the chart .!!.
I guess for most baby pips members do not understand even 5 point of 24 point .
Example bull reversal in a bear trend ..
1. Strong bull reversal bar ,large bull tend body and small tails or no tails.
2. The next two three bars also have bull bodies that are least the average size of the recent bull/bear bar.
3. The spike grows to five to 10 bars with out pulling back for more than a bar or so ,and it reverses many bars ,swing highs ,and bears flag of the prior bear trend .
4. One or more bars in the spike have a low that is just one tick above the close of the close of the prior bar .
5. One or more bars in the spike have an open that is above the close of the prior bar.
6. One or more bars in the spike have a close on the high of the bar or just one tick below its high.
7. The overall context makes reversal likely, like higher low or lower low test of the bear after a strong break above the bear trend line.
8. The first of second bar of the breakout has a close that is above the highs of the many prior bars.
9. The first pullback occurs only after three or more bars.
10. The first pullback lasts only one ore two bars , and it follows a bar that is not a strong reversal bar.
11. The first pullback does not hit a breakeven stop ( the entry price).
12. The spike goes very far and breaks several resistance levels like the ma, prior swing high ,and trends lines and each by many ticks.
13. As the first bar of the reversal is forming ,it spend most of it time near its high and the pullbacks are less than a quarter of the height of the growing bar.
14. There is a sense of urgency .You feel like have to bay but you want a pullback ,yet it never comes.
15. The signal is the second attempt to reverse within the past few bars ( second signal).
16. The reversal began as a reversal from an overshoot of a trend channel line from the old trend.
17. It is reversing a significant swing high or low(e.g., it breaks below a strong prior low and reverses up).
18. The high 1 and high 2 pullbacks have a strong bull reversal bars for signal bars .
19. It has trending “anything “:closes highs ,lows ,or bodies.
20. The pullback are small and sideways.
21. There where prior breaks of earlier bear trends lines (this isn’t the first sign and bullish strength).
22. The pullbacks to test the bear low lack momentum ,as evidenced by its having many overlapping bars with many being bull trend bars.
23. The pullback that test the bear low fails at the Ma or the old bear trend line.
24. The breakout reverses many resent closes and highs . For example, when the is a bear channel and a large bull bar forms ,this breakout bar has a high and close that are above the highs and closes of five or even 20 or more bars .A large number of bars reversed by the close of the bull bar is stronger sign than a similar number of bars reversed by only its high.