I mentioned earlier in the article below that you can see a certain trend in the chart at the turning point from a big trend in Forex, stocks and cryptocurrencies. This is what happens when you switch from an uptrend to a downtrend, or from a downtrend to an uptrend, but at the same time there is one more thing to look at. It is the lowest (or highest) price. A trend change occurs because the lowest price (highest price) is not updated.
Be aware of the highest price
Whenever a big trend changes, there is a rule that the highest or lowest price cannot be updated. The chart below is an uptrend. When aiming for a shift from this uptrend to a downtrend, it is necessary to make sure that the highs have not been reached. The uptrend will continue as long as it hits the highest price, and even if you sell on the contrary from this state, it will always be a loss and you will be forced to fight hard.
Therefore, when aiming for a shift from an uptrend to a downtrend, it is not possible to update the latest highs and it is necessary to confirm that the upside is heavy. And if you continue to be unable to update the highest price, consider entering. Opportunities are when buying and selling are in conflict, or when the highest price cannot be reached after hours.
Be aware of the lowest price
When aiming for an uptrend from a downtrend, look at the opposite pattern. Always be aware of the lowest price. The idea is the same for short-term and long-term legs. In the case of the chart below, the low price is being updated steadily. If you buy in such a state, you will always lose money and you will be forced into a tough battle.
Therefore, when aiming for a shift from a downtrend to an uptrend, it is not possible to update the latest lows and it is necessary to confirm that the downside is heavy. And if you continue to be unable to update the lowest price, consider entry. Opportunities are when buying and selling are at stake, or when the lowest price cannot be reached after hours.
If you switch from buy to sell or sell to buy, you will get a strong buy or sell. Especially in the case of selling, it is very easy to understand because there is a strong hidden line. If you buy it, you will get a strong positive line, and if you buy it, you will get a continuous positive line for several hours. When this comes out, it is a sign that the trend has changed.