Here we have some price action that might indicate a possible reversal of the uptrend. On the daily the price is trading at a Fibonacci retracement level. At this point it is a tentative head and shoulder pattern, the down trendline between the head and right shoulder create a triangle pattern. I will consider all possible moves the price can take, read the candlesticks around area of importance and trade the setup with the highest probability. It is up to the trade if they will trade any breakout with an order or, wait for a pullback after a breakout.
Note
False break down, price bounced off a support created by change in polarity principle - previous resistance change to support. Keep your head in the game, be in your traders zone when trading and manage your open positions.Note
Reversal patterns don't always indicate an immediate trend change but do sometimes give a waring signal that a trend change might be on the table in the near future. Use back testing on your favourite instrument and timeframe to see how many times a reversal pattern failed at first and only gave an early warning signal for traders to get out before the trend actually changed.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.