Share some knowledge: "CONDITIONS FOR REVERSAL TREND'

for everyone to study

For a major trend to have a sudden reversal signal is very difficult to occur. A sudden reversal

usually only happens with minor waves because it is quite random. Secondary waves can also occur but less often. As for a primary trend, it is almost very difficult to happen, and it must also test and challenge investors' confidence many times.

1. Necessary conditions:

- The trend of ‘up, down’ (trend line) is broken and retested with a reversal signal.

- The nearest important resistance level is broken.

2. Sufficient condition: The trend of ‘down, up’ is formed.

Any of these conditions can occur first, as long as both conditions are satisfied, then the reversal trend is determined. For example, for an upward trend reversal.

There are two basic forms of reversal trends: Everyone check the details below the image.

Below, I only take the example of retesting. In reality, there will be different cases. For example, two peaks, wedge patterns, etc. When the price comes back to test, many cases will occur, so we need to observe carefully to find the reversal point in those cases.

Therefore, traders need to be adaptable and flexible.

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