Reversals : The Helping Hands

Bullish/Bearish Reversals

• Bullish Reversals : 

Bullish Reversals always form in the downtrend of a graph. At some point, the graph leaps and we get a bullish trend. 

• Bearish Reversals :

Bearish Reversals always form in the uptrend of a graph. At some point, the graph falls down from a peak of a graph and we then, get a bearish trend.

Confirmation Of A Reversal :

We can do this by analyzing the trend line pattern, momentum and volume indicator. We recommend you personally to use indicators, they help very much for learning from basics to advance. 

Some Examples Of Reversals :

1. Hammer (bullish reversal) :

When a graph is going down and suddenly a hammer-like shape forms in the graph then be ready it can be a big trend reversal but do not take any steps without confirmation. 

Confirmation: 

When the next candle forms just after the hammer make a 'close' higher than the hammer's high then we are ready to invest. And we will remain in the market until the next candle shows any trend reversal.

2. Hanging Man ( bearish pattern) :

When a graph is going upside and then suddenly hanging-man candlestick forms it means you will going to see a major downfall in that graph. But we will wait for confirmation. 

Confirmation: 

When the candlestick next to the hanging man pattern makes its close below the hanging man's low then it will be going to be a good opportunity for investing your amount. And now, we will wait for the next trend reversal. If the market reverse then we will book our profit and out ourselves from the market.

Note : 

Our target:  As said above, we will wait for the next trend reversal and after that, we will book our profit.

Stoploss: We will put the stop loss as

As the hammer's low ( in case of hammer pattern)

And High of Hanging Man ( in hanging man's pattern)

Thank You,