What I Look for After a Sharp Reversal
A sharp reversal can look convincing, especially after price has moved aggressively in one direction.
But one strong candle doesn't always establish a new trend.
I watch whether the reversal holds its ground, whether the market breaks a meaningful swing level, and whether subsequent pullbacks support the new direction.
If price quickly returns to the original trend, the reversal attempt may have failed.
I want to distinguish a temporary reaction from a more sustained change in behavior before committing to a trade.