Wed. Jun 7th, 2023

Fxtriangle | Market analysis | Managed trading

Fxtriangle will make Fx trading look easy.

How to Identify Reversals?

1 min read

A retracement move is that the opposite of the trending move. It is the weaker leg of a trend and it trades against the direction of it.

The retracement move, in a healthy uptrend, usually has more bearish than bullish candles; the bearish candles are relatively small, and it always closes near the center or lows of the range.

When the bearish candles are becoming larger, it is telling you the selling pressure is getting stronger because the buyers are unwilling to shop for at higher prices.

As a trend matures, it will enter a distribution stage where both buyers and sellers are in equilibrium.

It is, therefore, clear the world of support is a crucial level as it’s the last line of defense for the buyers. If it breaks, it’s just about game over for the bulls.

A reversal occurs when a stock changes trend and starts to move in the opposite direction of previous price action. Psychologically, reversals are often incredibly difficult for even the foremost experienced investors to react to. That’s because within the early stages of a reversal, the market still shows many indications of a continued move within the original direction.


Leave a Reply

Forex trading and any instruments related to Foreign Exchange Market are Speculative and carry substantial risk of loss of either partial equity or the entire deposit amount. Leverage adds up to the risk, before considering to invest in this venture, you should first consider your financial position and may seek the help of an independent financial advisor. FXtriangle dis-recommends the usage of loan instruments to trade in this market as it can hamper financial position. Please do not invest the money that you cannot afford to lose. FXtriangle provides all its services throughout the Globe Excluding (Nigeria, British Virgin Island & the Islamic Republic of Iran) and also provides limited service in some jurisdictions where investment in Overseas markets / Fx Exchanges are prohibited by Law If you are not sure to contact us before using any of our services. FXtriangle acts as an Independent Corporate Financial Advisor and connects you to various overseas exchanges and cannot be held liable for any financial damage occurring through their side. All of our partnered institutions are regulated in various jurisdictions.FXtriangle conducts an independent background check before partnering with any institutions to fulfill your investment objectives smoothly. The usage of our Business name, Logo or any trademark in any financial forum, website, review website, complaint arena, Billboards without our written permission will attract lawsuits.