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...
He entered the trade, setting his stop-loss just ticks below the day’s low. The next bar opened
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. This was the reversal—a textbook "High 2" entry
Now came the hardest part: doing nothing. The price drifted sideways, teasing his entry point. His heart hammered against his ribs, a rhythmic echo of the ticking clock. Doubt, the trader's greatest enemy, began to whisper. What if this is just a bear flag? What if the trend is too strong?
He forced his hands away from the mouse. He focused on the structure. The lower highs that had dominated the morning were gone. A new, higher low had formed. The "Price Action" was shifting its weight.