Reversal Trade – how to read this setup 👀
A reversal trade focuses on spotting when a downtrend is losing strength and buyers start taking control. In the image, price makes lower highs (LH) and lower lows (LL), showing bearish structure. But notice what happens at the key support area.
Price keeps dipping into the significant zone and gets rejected with multiple bullish wicks. That’s a clue sellers are getting absorbed. When price breaks above the descending trendline, it confirms the shift in momentum.
Key takeaway:
Wait for structure + confirmation.
Support holding → rejection wicks → trendline break → potential reversal and continuation upside 🚀