|Usually occurs when the trend moves strongly||Can happen at any time|
|Occurs temporarily, or is also called a temporary reversal||Happened for a long time|
|Fundamentals such as macroeconomics do not change movements||Fundamental DO can be a catalyst for movement changes over a long period of time|
|When Uptrend buys a lot of sentiment, the price increases. And when the Downtrend gets more and more selling sentiment, the price goes down||When Uptrend has very little buying sentiment to push prices lower. And when the Downtrend is very little selling sentiment can push prices higher.|
In this case (see picture above), prices (traders) take a short break to take a breather at the 61.8% Fibonacci retracement level before continuing the uptrend. And after a while the price moves again and breaks again at the level of 50.0% before moving higher.
In addition to using the Fibonacci retracement we can also use the pivot point to determine the reversal.
When prices move uptrend, traders will see support for S1, S2, S3 and wait for a breakout. And when the price moves downtrend traders will see the resistance R1, R2, R3 and wait for a breakout. And if there is a breakout, the reversal will most likely occur.
The last method used is trend lines, if the main trend can be penetrated then most likely a reversal will appear.
And so that the opportunity to determine whether prices will experience a greater reversal, we can combine trend lines with Japanese candlesticks that we have previously discussed here.
Please note that the above methods are not the only method for detecting reversals and retracements. Maybe you will have your own method to determine market conditions like this, of course, after going through some practice and forex trading experience or whatever it is the shape of the object. For that, please learn a lot and don’t forget to practice it later.