We can think of this as a mathematical equation defined as X=A+B+C, where (X) represents a reversal, (A) represents a breakout from the falling , (B) represents a breakout above the 50 in orange, and (C) represents a higher high, above the (Previous High.)
I have formulated the conditional nature of market decision making, so that you can understand just how conditional it really is. Looking at the chart, we can see that one of those conditions has occurred — a breakout above the descending . However, in my opinion, this isn't enough to change the overall picture. Given the fact that more resistance lies just above, at the 50 , and then the previous high, this could end up being a failed breakout. Personally, I need to see more evidence, (B) and (C,) to believe that a trend reversal (X) has taken place. Otherwise, the pattern is still fully legitemate.
On the upside, we need to see price action break above the 50 (in orange) and the "previous high," , as confirmation that a trend reversal has taken place. On the downside, a breakdown back into the falling , or below the 200 (in purple) would be a big win for the bears. Please follow, like, comment, and share on social media! This has been your fearless market guide, M.P.C. and I'm out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
I however have drawn the difference conclusion
Market action will decide
By the way a break above the 50 EMA and the "previous high," resistance level , as 'Ladder Buy'
I will continue to follow your postd