Spotting the Difference between a Pullback and a Reversal? 📈📉

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[markyen]

After a downtrend and then a reversal to go long, my entry triggers are:
1) a hammer bar or bullish engulfing bar on a higher timeframe. When these type of candles form they set the low for the day or over several days;
2) After that I let the price go up which initially looks like a pullback. When the price starts to come down again, if the price makes a higher low it will then enter long at the high of the last red candle.

The opposite will be the reverse for going short.

I also use the VWAP, 13 and 50EMAs as my guidelines too

[smacpost]

I guess the trick is to get in at a price where if you're wrong, the cut is not too deep. And if you're right, the reward will cover the next 2 or 3 losing trades when they come.

[keen]

So true. The increasing volume on the opposite direction is a powerful sign that price is reversing and allow very much earlier entries than waiting for price acceptance after minor S/R level that might define the trend change,

[avaricefalls]

This is a question I ask myself multiple times a day.

[BrotherTree]

The biggest clue for me is this - after it moves in a particular trend for a while, it has a pullback. Then the market goes sideways and from there, that's where I think we need to be on standby as it could go either way. Where the price pulls back to, it hits a certain level (ie. Resistance for downtrend, support for uptrend) and retreats from it. And if it does that more than once, then we look to see if the next move/test towards that level breaks that certain level and it confirms/holds (ie. The preceding candle/s close above that level) more than once, depicted by where the preceding confirmation/holding candles close.

[Dee--Jay]

On a % minute chart, once it breaks the most recent Lower high, Im gettin in a trade slightly above it and aim for a target above it . atleast every other pivots in that recent down trend for potential target

[Rita]

That failed leg down from double top didn’t break the bottom and the price exited the trend line and came back to the upper support to break. At the exit of that trend line is the entry point

[milesvanrothow]

I might also look at volume and momentum indicators.

[TIRapi]

Valuable information. Also, notice the strong initial bullish moves at about 3pm. They can hint that buyers are taking over for now.

[AshishVaidya]

Good to see the clues for potential trend reversal.

[dimitridehouck]

Just discovered your video's. They are great, you have yourself a new subscriber.

[fredandersonweb]

Thanks again for another excellent training video.

[Rita]

3:44 at that point where the + is anybody would understand it’s not a pull back any more. I’m interested how not to get short after that double top and what to do if you entered short after a second double top?

[Brajendu]

its a really BIG question we face everyday...and you're giving us good clue...!!

[ryanguy]

Really nice overview, thanks for a great video.

[zombkillr]

awesome video and insight into buyer/seller psychology. Thank you

[rameses]

Thank you for a wonderful video .. it really helped me in understanding trading in a better way

[gabooogh]

Let get something. This doesn't work. - analysis paralysis-
So I see a whole fix theory of what will happen but in reality the market presents different scenarios. So instead find a better way to handle the scenario than this method.
Something that is consistent and will not matter if it was reversal or pullbacks.
I won't necessarily say X or Y. But trust me a better look at the situation will reveal a lot.
Good Luck Traders

[karaanjethaani]

Thank you so much for this information ....