๐ TREND REVERSAL OVERVIEW
The chart illustrates how a downtrend (lower lows and lower highs) transitions into an uptrend (higher highs and higher lows).
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๐ฅ Left Side: Bearish Trend
LH = Lower High
LL = Lower Low
BOS = Break of Structure
The market keeps making LL and LH, confirming a bearish trend.
Each LL breaks the previous low, showing strong selling.
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โก CHoCH (Change of Character)
The CHoCH (Change of Character) happens when price fails to make a new LL and instead creates a higher high (HH).
This indicates that supply is weakening and demand is stepping in.
It's the first early sign of a potential reversal.
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๐ฆ Right Side: Bullish Trend Begins
HH = Higher High
HL = Higher Low
Demand zones are shown as shaded areas, where buying interest increases.
BOS to the upside confirms the bullish trend as price breaks previous highs.
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๐ก Key Concepts in the Chart
Demand Zone: Area where buyers are stronger; price reacts bullishly.
CHoCH: First sign of trend reversal.
BOS: Confirms trend direction โ in this case, the shift to bullish.
SS + BSL (Sell-side + Buy-side Liquidity): Indicates liquidity grab or manipulation before continuation in the new trend direction.