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Trendreversal

Similarities between Trend Reversals and Driving a CarHappy New Year🎆, Traders👋 On this post, I'm going to share the similarities between trend reversals and driving a car. This post would help you if; -You are struggling with trend reversals -You tend to make early entries e.g. you stopped out and the market moves in your favorable way Driving cars For those who drive cars, these are obvious things, but let me just explain what you are gonna do when you turn the corner. Take a look at the left side of the image drawing below. When you make a turn, you; (1) Gradually slow down as you approach a corner (2) Turn the corner at the lowest speed (3) Accelerate as you exit the corner You do them naturally without thinking anything if you have a driver license. Now, let’s take a look at what is gonna happen when trends reverse. Trend reversals Look at the right side of the chart above. This illustrates when a downtrend reverses to an uptrend. (1) Price going down (2) Stop (3) Price going up (1) When a bear market or downtrend is in progress, prices keep going down, making lower highs and lower lows. At the beginning of the downtrend, it usually starts with a sharp slope, but as the prices go down, the speed also gets slow and it becomes a gentle decline. (2) When a downtrend comes to the end, it; -stops making lower lows -creates a equal low (aka W bottom) -make a slightly higher low(this is also another formation of W bottom) -becomes a range These are the signs when downtrends end. (3) After the market makes a stop at the bottom, uptrends starts, usually breaking a range and/or creating a new high. The speed of the trend gradually accelerates as if a car exits from a corner. It looks super simple, easy and obvious in writing, however, in reality, many beginner traders and/or traders who are struggling with trend reversals tend to buy at (1). Why? The reason is simple. They want the bottom. When greed dominates your emotion, these things do not exist in your brains anymore. You know what happens then? They got stopped out and the market moves as you expect. This is like you are approaching a corner without reducing speed and end up with falling off a cliff. Cars cannot immediately stop, neither do trends Just like cars cannot stop(or make a turn) suddenly, trends do not change that easily. You would be able to eliminate unnecessary entries and/or FOMO entries, simply asking these questions to yourself. “Isn’t it too late to buy at least when I see the market makes a stop?”
Education
by FX365_Thailand
(BTC-USD) Possible Trend Reversal (August 22)Patterns from other cycles seem to be repeating, after a new ATH from each cycle the price heads towards the green area where the EMA50 is, making a support. The price rises, but does not resist the selling pressure and breaks the EMA50W, retests the same average in the yellow area but now as resistance. Immediately crashes and reach EMA200, break the same average, but it has a fast recovery and reaches the accumulation zone in the blue area where historically it was the best zone to buy. Bitcoin goes back up and hits a new ATH and the cycle repeats. It worked so far, but several external factors can influence some values, so don't take my analysis for granted.
BITSTAMP:BTCUSDLong
by Wojak19
1
The Bitcoin Breakdown of the downtrend. A NEW BULLRUN?The BTC price have been in a downtrend since its peak, early November 2021 at a price high shy of $70,000 US Dollars. Since, price had decreased 50% plus to a local bottom around $33,000 US Dollars, Late January 2022. Followed by a relief rally with a peak around $48,000 US Dollars, Late March. For then continue its downtrend to the support area around the $18,000 US Dollars (that just around the price peak of late 2017). Recently, this month the price made a break of the downtrend channel form by this price peaks/bottoms since November 2021. This break can be observe around the price of $19,300 US Dollars.
BITFINEX:BTCUSDLong
by sosacur01
AUDUSD as expected HUGE UPSIDE MOVE!!!As expected price made a lovely rejection from the bottom of this consolidation zone and break out to the upside showing that we could be in for a longer term trend change. Ill be looking for price to make a pullback from the bullish move and look at catching the continuation leg to the upside. Wait for the best risk reward and follow market structure, price more then like always gives you a second chance to get into a trade so always stay patient!!
Long
by jamison_fx
3