
Retracement vs reversal
Retraces are brief price fluctuations that occur as part of a bigger trend. The crucial point is that these price variations are only transient and do not represent a shift in the wider trend.
Despite the failures, the long-term trend reflected in the table below remains absent. The stock price continues to rise. If the price increases, it can set a new high; if it falls, it will begin to recover before the prior low is reached. This is one of the fundamentals of the uptrend, in which there are higher highs and lower lows. When this occurs, the trend is rising.
Reversal:
Retraces are brief price fluctuations that occur as part of a bigger trend. The crucial point is that these price variations are only transient and do not represent a shift in the wider trend.
A reversal, on the other hand, occurs when an asset's price trend switches direction. It suggests that the price is likely to stay in that reverse direction for a long time. These directional adjustments might occur to the upside following a downward trend or to the downside following an upward trend.
Despite the failures, the long-term trend reflected in the table below remains absent. The stock price continues to rise. If the price increases, it can set a new high; if it falls, it will begin to recover before the prior low is reached. This is one of the fundamentals of the uptrend, in which there are higher highs and lower lows. When this occurs, the trend is rising.
Reversal:
Retraces are brief price fluctuations that occur as part of a bigger trend. The crucial point is that these price variations are only transient and do not represent a shift in the wider trend.
A reversal, on the other hand, occurs when an asset's price trend switches direction. It suggests that the price is likely to stay in that reverse direction for a long time. These directional adjustments might occur to the upside following a downward trend or to the downside following an upward trend.
Jun 09, 2022 04:59