Crypto Academy / S5W3- Homework Post for @reminiscence01".

1.) a) Explain your Understanding of Trend Reversal. What is the benefit of identifying reversal patterns in the Market?

What is trend reversal

What is the meaning of reversal the word is common and we heard this word many times reversal means anything which change its direction and deviates this is the common meaning of reversal and the crypto the meaning of trend reversal is In the common words trend is when the price trend changed from going up or down and in this you have to know that the trend is not in the one direction it trading some people thinks the trading is so easy but my opinion is the trading is not easy if you have knowledge about trading then you able to make profit and if you don't have a knowledge about then you always go in loos that's why first you have to get knowledge about trading and then you do trading and here we know about two trend first trend is bullish trend and the another is bearish trend.

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Bullish Trend

A bullish market is the market where the condition of a financial market prize is rising and expected to rise and the bullish market is refer to the stock market but it can be used for anything you do that is trading like bonds, real estate and currencies another common meaning of bullish trend is it change it's direction.

• Bullish market is a time when the financial markets prize rises continuosly.

• Another common meaning of bullish trend is when the prize of stock is increases by 20% after two declines of 20% each.

• For the profit of market they increases the buy and hold for their profit.

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Bearish Trend

In the basic and common words the bearish Trend in financial market define as a downward trend and bearish trend is characterised by the higher investors and the price falls by 20% is termed as bearish Trend and the bearish Trend is play a very important role in the trading market because sentiment is a key factor this determine that how the financial market move and the pressure of bearish market is higher than the bullish than it happens in drop in price and the motive of bearish market is when they invest or do anything and then they believe they get a profit from it.

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b) How can a fake reversal signal be avoided in the market? (Screenshot needed).

In this market avoiding fake reversal is an important thing and these fake reversal is avoided by the indicators and i use adx indicator and the full form of adx is average directional index and the work of adx indicator is it is a technical analysis indicator and it is use by some traders for determining the strength of trend and that's all I know about the adx indicator.

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2.) Give a detailed explanation on the following Trend reversal identification and back up your explanation using the original chart. Do this for both bullish and bearish trends (Screenshots required).

a) Break of market structure.

This play a very important role in the market it helps to give direction of price and you know in our last previous lesson we learnt about up trend and down trend and meaning of up trend is the price of the is going high with high low and in the other down trend in this the price is going down with lower lows.

One more thing about this indicator this shows the indication of trend reversal and we also learnt about bullish and bearish trend and these trend formed when the structure of market is break out and the simple meaning of breakout is when the price of an asset moves on the resistance area is termed as breakout and the breakout is happen only on the large areas back to the question in the bearish trend it shows the price movement with higher lows and with the lower lows and this is the indication of break in the market structure this all thing is going because the buyers are unable to push the price in the Bearish trend.

Break of Market Structure in a Bullish Trend

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Break of Market Structure in a Bearish Trend

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Break of Trendline

A Trend line is a line is drawn from high pivots to the low pivots means they show the direction of price another simple definition is it is a line that connect or passes through a two or more point is termed as Trend line and the trendline play a very important role it help to give direction of price in the market price changes is the indication of either bullish or bear.

Break of Trendline in The Bullish Market

This is a that type of market scenario in this the bullish which in trending is kept in against intermittent retracements and in the Bullish trend the Trend line is below and in the trend channel line is above the high and then this breakout is lead to trend reversal breakout.

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Bearish

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Divergence

It is also termed as the Trend reversal it occurs when the mixed signal between the price action and in the indication signal divergence is when the price of an indicator is moving on the opposite direction is termed as divergence and without indicator the price is not measured in chart in divergence.

Bullish Divergence

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Bearish Divergence

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Double top

The double top is best and powerful trading pattern and this help us to make good decision and double top is the chart pattern and it is a technical analysis of financial market and it is formed during a bullish market and in this the price of second top is not higher than the first top.

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Double Bottom

It is also a reversal chart pattern and it is found in the downtrend this is not powerful trading pattern because it fails to create a new lower low that's why this is not powerful and the sellers pushing price down and in this the price of second bottom not be lower than the first bottom.

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3. Place a demo trade using any crypto trading platform and enter a buy or sell position using any of the above-mentioned trend reversal/continuation patterns.

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According to me, I see a Trend reversal is double top and it is good it make a good decision and this form during a Bearish Market and in this the valid trade breaks at 1.2158 with the higher low point and the loss ratio is 0.7997 amd the profit ratio is 1.5000 it is all the ratio of chart.

Conclusion

Today I learnt about Trend reversal and it's types and I am glad to answer these questions thank you professor for this beautiful and knowledgeable lesson.