PRICE ACTION - A SIMPLE GUIDE TO TRADE!

Key Elements:

1. Bullish Trendline: Initially, the market is in an uptrend, forming higher highs and higher lows supported by a bullish trendline

2. Resistance Level: Price reaches a resistance zone, where previous highs were rejected

3. Fakeout: Price breaks above resistance briefly, creating a “fakeout.” This traps traders expecting a breakout

4. Trendline Break: The price then falls back below the resistance and breaks the bullish trendline — a strong signal that bullish momentum is weakening

5. Retest: After breaking the trendline, the price retests it from below. What was once support becomes resistance

6. Entry Point: This retest provides a potential entry for short positions as confirmation of a trend reversal

7. Reversal Move: Following the retest, the market continues downwards, confirming the bearish shift

Conclusion:

When a market shows a bullish trend, it’s logical to seek long trades. But once a fake breakout occurs, followed by a trendline break and retest, it’s a clear signal of a possible trend reversal ✅