📚 The Difference Between a Reversal and a Continuation!

Nov 18, 2022

Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst.

Today I want to share an interesting pattern that I always use to speculate (to an extent) the next move of an asset after an impulse movement.

First, locate an impulse movement, bullish or bearish.

Second, wait for the correction movement to start.

📌In case of a bullish impulse:

1- if the correction movement is bearish, then expect a continuation bullish impulse to follow.

2- if the correction movement is bullish, then expect a reversal bearish movement to follow.

And vice versa...

📌In case of a bearish impulse:

3- if the correction movement is bullish, then expect a continuation bearish impulse to follow.

4- if the correction movement is bearish, then expect a reversal bullish movement to follow.

📉We can clearly see this pattern is playing out nicely on BTC weekly chart. I have highlighted many example with its pattern number respectively. And you can always refer to the cheat sheet on the left inside the two circles.

If we apply the same logic to the current price action. Is BTC currently in a bearish correction as per our case #4?

🗒What do you think?

Always follow your trading plan regarding entry, risk management, and trade management.

Good luck!

And always remember:
All Strategies Are Good; If Managed Properly!
~Rich