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📉 Spotting Trend Reversals vs. Continuations! 🚀 Avoid Bad Trades with These Tips! 💰
1. Failure to Make Higher Highs: If the price struggles to create new highs or fails to break above previous highs, it’s a signal that the bullish momentum may be weakening. This often suggests that buyers are losing strength, opening the potential for a bearish reversal.
2. Reaction from Points of Interest (POI): Observe how the price behaves around significant points of interest, such as supply or demand zones. If the price reacts sharply from these areas without continuation upward, it indicates that sellers may be stepping in to defend that level, signaling potential bearish control.
3. Shift in Market Structure: Look for a shift where the price starts forming lower highs and lower lows after a bullish trend. This structural change typically means that the bears have gained control and a downtrend or reversal may be on the horizon.
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