Hello guys so today I want to talk about how you can confirm whether a trend is continuing or reversing. I will explain the four general concepts you must know with examples. To end the tutorial I will illustrate what this means for the current Bitcoin down trend.
These are the four general concepts you must know in order to understand whether a trend will continue or reverse:
So first of all, what is Losing the High? Losing the High is when you close below start of the move that took you up to the high.
Here is an example with explanation:
The second concept of Losing the Low. Losing the Low is when you close above the start of the move that took you down to the low. So it's essentially the opposite of Losing the High. Here is an example, again with explanation on the chart:
The third concept of Gaining the High is when price closes above the recent significant high in an up trend and here is an example on the same chart as the Losing the Low example:
The final concept is Gaining the Low and as you probably have figured out by now it is when price closes below the recent significant low in a down trend to show that the down trend will continue. Here is an example:
I have now explained all the concepts you need to understand to figure out whether a trend will continue or whether it will reverse. To conclude the post I will apply this type of analysis to Bitcoin in its current state...
Weekly/ Long-Term Perspective:
4-Daily/ Medium-Term Perspective:
Daily/ Short-Term Perspective:
Thank you for reading and have a good day.
P.S. These are not concepts that I came up with myself, I learned them from a guy called Dope Trades, you can find his work here: https://www.tradersunderground.co/
Legal Disclaimer: This is just my analysis and not to be taken as professional financial advice. Do your own research beyond what you read in my blog posts and make your own decisions based on your beliefs about what to invest your money in.
