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How to Identify Trend Reversal Point

Discussion in 'Technical Analysis' started by shabbir, Aug 8, 2021.

  1. shabbir

    shabbir Administrator Staff Member

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    How to Identify Trend Reversal Point and how it is different from identifying the end of bull market and bear markets.

    Continue reading...
     
    shabbir, Aug 8, 2021
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  2. emailsaravanans

    emailsaravanans Active Member

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    https://school.stockcharts.com/doku.php?id=chart_analysis:trend_lines

    In this conclusion of the above article they are saying:
    "Trend lines can offer great insight, but, if used improperly, can also produce false signals. Other items - such as horizontal support and resistance levels or peak-and-trough analysis - should be employed to validate trend line breaks."

    They are saying we need to use other factors like horizontal levels and peak-and-trough analysis.

    Also in the example they have given, The VeriSign stock broken the trend line but continued to set a new high.

    What do u suggest?

    Also, Is there any tool where-in we could get this trend line or any tool where we can draw these lines and save it for future use ?

    Thanks in advance!
     
    emailsaravanans, Aug 9, 2021
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  3. shabbir

    shabbir Administrator Staff Member

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    What they say is correct and technical analysis predicts the future movement based on past patterns. They work but not always. You should remember it once trading. The reason to have stop loss.
     
    shabbir, Aug 9, 2021
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