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How to spot a Trend Reversal with Price Action
Australian Dollar / U.S. Dollar
Education
How to spot a Trend Reversal with Price Action
By Kaetea_Ng
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Sep 18, 2018
1
Cheer
Cheer
Sep 18, 2018
Many traders like to define a
trend
as a series of
higher highs and higher lows
, or a
series of lower highs and lower lows
.
In the chart, the price initially is in a down trend as indicated by the series of
lower highs and lower lows
.
First indication of a reversal is a break of the trend line.
The second and more important indication is the breach of the recent high and we created a higher high and subsequently a higher low.
The Trend is always your friend but the skill is to identify the correct direction of a trend or eventually a reversal.
Chart Patterns
highlow
reversal
Trend Analysis
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