The Difference Between Trend Continuation and Trend Reversal
A pullback does not automatically mean a trend reversal.
In an uptrend, price may temporarily move lower before continuing upward.
A potential reversal requires stronger evidence, such as:
- Failure to maintain higher highs.
- Break of meaningful swing structure.
- Change in momentum.
- Acceptance beyond an important opposing level.
Avoid calling every retracement a reversal.
Remember: Understand the difference between temporary weakness and a genuine structural change.
Do you prefer trend-following strategies or reversal setups?
