Trading Price Action Reversals: Technical Analy... 100%

The next bar opened. It dipped slightly, testing the low of the hammer, then snapped back. It surpassed the high of the previous candle. This was the reversal—a textbook "High 2" entry in a potential trend change.

To the untrained eye, it was a bloodbath. To Elias, it was a setup. Trading Price Action Reversals: Technical Analy...

Suddenly, a green marubozu candle ignited on the screen. A large institutional buyer had stepped in. The price surged, reclaiming the EMA and blowing past his first profit target. Elias moved his stop to break even, the tension in his shoulders finally dissolving. The next bar opened

He entered the trade, setting his stop-loss just ticks below the day’s low. This was the reversal—a textbook "High 2" entry

The price hit a major psychological level and stalled. A long wick began to form at the bottom of the current candle, leaving behind a sharp "tail." It was a hammer pattern, a sign that the bulls were finally fighting back. But Elias didn't click 'Buy' yet. He had learned the hard way that a single candle is just a word; he needed a full sentence.