Who do you differentiate between Retracement and Reversal?

ele020

Miembro desde Apr 15, 2020 posts 187

Feb 01, 2021 at 07:39

Miembro desde Apr 15, 2020 posts 187

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.

LyudmilLukanov

Miembro desde Jul 23, 2020 posts 816

Feb 01, 2021 at 09:25

Miembro desde Jul 23, 2020 posts 816

Retracement is temporary price reversals and reversal is when the trend changes direction.

ele020

Miembro desde Apr 15, 2020 posts 187

Feb 02, 2021 at 06:45

Miembro desde Apr 15, 2020 posts 187

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.

lanayates

Miembro desde Dec 15, 2020 posts 11

Feb 23, 2021 at 04:21

Miembro desde Dec 15, 2020 posts 11

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.

robindude

Miembro desde Dec 11, 2020 posts 81

Feb 23, 2021 at 08:28

Miembro desde Dec 11, 2020 posts 81

This is a quite long video, but this may be useful in helping you out in understanding the difference with these -

cardigan

Miembro desde Jul 27, 2020 posts 99

Feb 23, 2021 at 09:47

Miembro desde Jul 27, 2020 posts 99

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

EURUSD	1.13218	GBPUSD	1.33179	AUDUSD	0.63852
USDJPY	144.641	USDCAD	1.38134	USDCHF	0.82844

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Who do you differentiate between Retracement and Reversal?