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ALKYLAMINE : How to spot Trend Reversal
There are 3 tools to identify a Trend Reversal
Fibonacci Retracement Indicator:
- Fibonacci retracement levels are prices, depicted as horizontal lines on a chart, that indicate where support or resistance could likely to occur.
- The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points.
Here in this chart Swing low is 462 and Swing high is 4386
The price has fallen from 4386 and is consolidating at 0.618 which is also called as golden ratio and acts are strong support.
Pattern Identification:
The falling wedge pattern occurs when the asset’s price is moving in an overall bullish trend before the price action corrects lower. Within this pull back, two converging trend lines are drawn. The consolidation part ends when the price action bursts through the upper trend line, or wedge’s resistance.
Volume breakout after consolidation: Here in this chart, volumes are huge near the upper trendline of falling wedge pattern indicating a strong trend reversal.
Thanks for sparing time to read this learning article. Good day!
Fibonacci Retracement Indicator:
- Fibonacci retracement levels are prices, depicted as horizontal lines on a chart, that indicate where support or resistance could likely to occur.
- The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points.
Here in this chart Swing low is 462 and Swing high is 4386
The price has fallen from 4386 and is consolidating at 0.618 which is also called as golden ratio and acts are strong support.
Pattern Identification:
The falling wedge pattern occurs when the asset’s price is moving in an overall bullish trend before the price action corrects lower. Within this pull back, two converging trend lines are drawn. The consolidation part ends when the price action bursts through the upper trend line, or wedge’s resistance.
Volume breakout after consolidation: Here in this chart, volumes are huge near the upper trendline of falling wedge pattern indicating a strong trend reversal.
Thanks for sparing time to read this learning article. Good day!
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