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Below are the forex faq for this post
What is the best method to identify reversals in the market?
To identify forex reversal, the best way will be through a combination of candlestick patterns and Fibonacci level.
Here are the forex reversal candlestick patterns to look out for
Head and Shoulder – This pattern consists of a centre head with left and right shoulder. When you see this in an uptrend, it is a sign that the market is going to move south. If you see this in a downtrend, it is a sign that the market is going to move north.
Double Top/Bottom – The double top and bottom pattern looks like a M and a W respectively.
Besides these patterns, you can make use of the Fibonacci 0.382 level as a way to tell reversal. Most of the time, the price moves in waves and these waves seldom retrace more than 0.382 levels.
If the wave retraces more than 38.2%, it is usually a sign of reversal. If you see any one of the above reversal candlestick pattern together with a retracement more than 38.2%, there is a high probability that a reversal is in action.
If you guys have anything to add, do feel free to give your comment below.