Who do you differentiate between Retracement and Reversal?

ele020
ele020
Feb 01, 2021 at 07:39
503 Views
5 Replies
ele020
ele020
Member Since Apr 15, 2020   219 posts
Feb 01, 2021 at 07:39
I welcome views from both Newbies and experience traders that when do you know if its a retracement of reversal?
The more your practice, the more you learn.
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LyudmilLukanov
LyudmilLukanov
Member Since Jul 23, 2020   869 posts
Feb 01, 2021 at 09:25
Retracement is temporary price reversals and reversal is when the trend changes direction.
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ele020
ele020
Member Since Apr 15, 2020   219 posts
Feb 02, 2021 at 06:45
forextrader777 posted:
Reversal is there when the price continues for a longer period in the direction of the trend.
Retracement is there when there is a temporary price reversal which does not make any changes in the larger trend.
Right, but how do you identify if its going to be a retracement or reversal for the purpose of planning your trade?
The more your practice, the more you learn.
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lanayates
lanayates
Member Since Dec 15, 2020   14 posts
Feb 23, 2021 at 04:21
There is a bit of difference between the two. Reversal is when a trend changes direction while retracements are price reversals that happen within a larger trend. They are usually temporary in nature.
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robindude
robindude
Member Since Dec 11, 2020   110 posts
Feb 23, 2021 at 08:28
This is a quite long video, but this may be useful in helping you out in understanding the difference with these -
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cardigan
cardigan
Member Since Jul 27, 2020   102 posts
Feb 23, 2021 at 09:47
robindude posted:
This is a quite long video, but this may be useful in helping you out in understanding the difference with these -
This is very useful, thank you for sharing this
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