Graphic explanation reverse form

The reversal pattern is introduced here, sometimes accompanied by market details (the story behind the price).

Describing foreign exchange in foreign exchange language brings it closer to the market and provides more details.

The following are all examples of turnaround

1. Classic inversion pattern

The price falls near the support line, rebounds sharply and crosses the trend line, and then retracts to form a second low, usually retracting to 50%, and then rallies.

2. plunge

The price plummets, crosses the support line, and immediately rebounds above the support line and above the trend line. Here, it sometimes retracts to the support line and is rebounded, while most of the time it hardly retracts and rises directly.

The key here is to immediately rally above the support line, otherwise a lot of selling will quickly accumulate above, making it difficult to rise later.

3. Interval (dense)

The price falls near the support line, rebounds, and crosses the trend line. But then it falls again, tests the support line, and of course rebounds from the support line again, but the rebound is not as high as before, and will be balanced in a range, because there are a lot of selling orders piled up above the range, and a lot of buying orders piled up below the range. Unless there is a breakout, there is no direction. The picture shows the situation of an upward breakout.

4. Empty

The price fell, but the decline gradually weakened, that is, the decline was gradually compressed, and near the support line, it suddenly broke the trend line sharply, causing the bears to panic, and they all appeared to hedge, causing the price to further rise. This part of the market is driven by stop losses. If it goes higher, there will be short cover, and the bulls can only accept it with a smile.

5. Market hesitation

The price fell near the support line, protected by the support line, but the strength of the rebound is gradually weakening, and the strength of the decline is also gradually weakening, and the future direction is very confused. The picture shows the situation of getting out of the confusion.

6. Panic selling

It falls like a waterfall, even falling through the support line below, but quickly rebounds to above the support line (above the trend line). Then the previous low is measured again, but it forms a second low, and then a V-shaped rebound.

The following is a chart showing the decline: