How to Know that a Pullback is Actually a Reversal 📉📈
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- เผยแพร่เมื่อ 8 ก.ย. 2024
- How to Know that a Pullback is Actually a Reversal www.financial-s... PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Trend Reversals: How To Spot and How To Trade. Let's look at some tiny price action clues that a pullback could actually be a reversal. This one is mostly for day traders. This is a good question that I get asked quite a lot. You have a scenario where the market is pushing up and pushing back... should I buy or sell? You need as many clues as possible to give you an idea of what's going to happen. Of course if this worked every time we would all be millionaires. But this is about building an edge and hopefully building a strategy that has positive expectancy and is possible and which we can continue using for a long time. The first thing to consider is the distance of the pullback and angle of the pullback. A shallow pullback is far better from a bullish perspective... This is all about supply / demand imbalance. The other scenario is to look at the length of the candles to the downside compared to the green ones.
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I always love when teachers say the logic of what they are teaching and why and how it happens. That way I can comprehend the subject and do my own analysis and be able to adjust to different situations. That's why this channel is so good.
Great video as always!I also check for volume on a pullback and if its high then it could be a reversal
The part about a pullback getting "Shallow" and slowing down near the bottom of its drop is particularly correct in my experience. The nice ones happen when pulls back then just sits in the same spot for a day or two. You can almost sense the momentum building up when it starts to move back up.
Excellent stuff Mark. Such solid 3 points you could actually start here as a basis for trading course by gradually expanding on those 3 fundamental points.
Trading really does boil down to this one question. If you can answer it successfully more often than not, that's it...you got it.
Here's a simpler idea. High volume on the move up, and low volume on the move down is bullish.
EXCELLENT VIDEO.....!!!! Hey everyone watch this over and over until you know it by heart, and then watch your Balance GROW ....!!!
Your content is superb and suprisingly undervalued! Thanks for this excellent work Mark.
My favourite trading channel ...much love and respect
Mark -
We can synthesize your information as follows:
1) Steep Angles - Move will trend
2) Long Bodies - Move will trend
3) Short Wick - Move will trend
Conversely ...
1) Shallow Angles - Move will reverse
2) Short Bodies - Move will reverse
3) Long Wick - Move will reverse
In essence, this is the logic you just taught. For any stock movement, apply these principles to gauge how long the direction will last. As you see the angle of the move increasing, and as you see longer candle bodies form with shorter to no wicks, you know the direction the candlesticks are moving is growing stronger and will continue. As you see the angle of the move decreasing, and as you see shorter candle bodies form with wicks developing and getting longer, you know the direction the candlesticks are moving is growing weaker and should reverse.
Another principle is that candle bodies are stronger indicators than candle wicks.
A hanging man candle at the top of a move long is a reversal indicator because of the bottom wick that forms showing selling pressure down, but it is not as powerful of a reversing indicator as a shooting star candle with a long topping wick and short candle body indicating selling pressure has gained control with a rejection of buying pressure by a selling price closing lower than the opening price.
An inverted hammer candle at the bottom of a move short is a reversal indicator because of the topping wick that forms showing buying pressure up, but it is not as powerful of a reversing indicator as a hammer candle with a long bottoming wick and a short candle body indicating buying pressure has gained control with a rejection of selling pressure by a buying price closing higher than the opening price.
I added these last 4 doji candles (hanging man/shooting star/inverted hammer/hammer) to add depth to the types of reversal indicator candles that form at the end of moves long and short because it fits nicely with the topic you explained. I realize you are teaching whether a move is a retracement or a reversal, but if you think deeper you'll realize you are really teaching how to identify the strength of a stock's direction and thereby whether it will continue to trend. In context of a change in stock direction, if it is a strong change in direction as identified above then it is a reversal of the prior direction; otherwise, it is weak change in direction and is merely a retracement.
if it pulls back more than 40-60% or the price action is wide long bars most likely it will reverse 100+ percent, usually narrow pullbacks havent rested long enough will go up then fail
This video is fantastic! Thank you so much. I love the nature of the comment and the uncommon detail you've provided around candle patterns and trend in positioning to look for.
These guys actually give you good information in just about every video! I've only been trading for about three years but I was nodding my head in agreement with this video the whole time. Very good stuff!
Fantastic, thank you so much........I love the fact that you explain why, and with no fluff. You are very generous, thanks again
Losing can take a deep toll on you, remember to always trading with good caution
Great video. Guys don't be fooled by a break of structure means a trend reversal, it does not. they can be retracements of the overall trend. This is something i have only just realised after trading for so long. I always thought if the 4hr is breaking structure to the downside then we are in a downtrend. NO. These are just retracements that are very temporary and can get you on the wrong side of the market.
Thank you, you are one of the best teachers out there. Your videos helped improve my trading alot.
Many thanks.
I have used your pullback strategy, and it has worked well so far.
Great explanation, one of the most direct and easy to understand. Thanks for your videos!
Thank you Mark, you do give the most concise explanations 👍
I already learned this concept a while ago in my training but the way u explain it was a very simple task
These tiny clues are very useful for identification of potential reversal.
I wish I could join you in person for a live workshop. Best trading teacher on TH-cam by FAR! Thanks man. -Matt
peace and prosperity
Logical strategic explanation 👍
Thanks Mark Sir
Im new but my key critearia for a reversal is the day charts if its hitting a s/r i buy or sell. Big chance to bounce
great content, always got what im looking for, and always good info.
thanks for your hard work and sharing your knowledge.
a pull back on a high volume more than average daily volume signals bearish sign the key is volume
weekly -> daily --> resistance or support levels
Thank you Sir!
Great video Mark! Wouldn’t it also be another indication of a reversal if it formed a lower low after an uptrend or vice versa? Also, if a pullback were to retrace more than 78.6 fib level?
Awesome videos some really good information you cover.... trading is hard managing everything about myself...where to put stops when to scale in and not over trading when its not working... taking profits or holding so much to trading...risk per day and per trade think...I'm putting stop depending on the entry and where trade idea becomes no longer valid always working on basically everything thank you so much
Wery important video tho
Great vid
Nice dear you are doning brilliant work for traders
Good thanks, why not you come back with live examples,
Nicely explained. Subscribed
Such a classic strategy 👍🏾
I appreciate you man
that was what I needed. I just think more would better, but those 3 are well written in my study book lol
Great analysis! 👍🏼
What is a valid pullback?
Thank you Mark Great explanation and video as always
Fantastic instructor!
Interesting. Good video. I wonder if there can be any help in switching to Heikin Ashi when there is a pullback.
Nice one, thanks
can u please explain some chart pattern and how to spot them and see if its a pennant or something that looks the same
Thank you sir
Realy helped me thankyou.
Very useful tips 👌
Good stuff, thanks for your tips!
I didn't understand the candles explanation. It would be better use red and green pen.
What if I don't use candlesticks, and use price action bars like renkos?
I know people who make money trading who don't even make use of technicals. So stick to what works for you! I like Renko charts too.
Great video!
How about top wicks in a bullish trend? Does that mean there are a ton of sellers?
you should show us an actual chart to see it better.
Thanks I appreciate the video
Who are the buyer and sellers that influence the charts? Aren't 99% of retail traders simply watching the charts with absolutely no influence on them? So it's just the big institutions adjusting the charts right?
that help me a lot thank you
wow gr8 video.
thank u sir.
thnx bro
Don’t enter during a volatile trend , that’s it
does anybody day trade Uk stock market?
honestly, that reverb stuff is very irritating to my ears. I have to turn the sound down then up again.
You mean the intro?
thank you
❤🙏🙏