What Is The Best TIME FRAME For Trading FOREX? FX222

What Is The Best TIME FRAME For Trading FOREX? FX222
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Retracement
Retracements are temporary price reversals that take place within a larger trend. The key here is that these price reversals are temporary and do not indicate a change in the larger trend.

Notice that, despite the retracements, the long-term trend shown in the chart below is still intact. The price of the stock is still going up. When the price moves up, it makes a new high, and when it drops, it begins to rally before reaching the previous low. This movement is one of the tenets of an uptrend, where there are higher highs and higher lows. While that is occurring, the trend is up.

It is only once an uptrend makes a lower low and lower high that the trend is drawn into question and a reversal could be forming.

Reversal
A reversal, on the other hand, is when the price trend of an asset changes direction. It means that the price is likely to continue in that reversal direction for an extended period. These directional changes can happen to the upside after a downward trend or the downside after an upward trend.

Most often the change is a large shift in price. However, there may be pullbacks where the price recovers the previous direction. It is impossible to tell immediately if a temporary price correction is a pullback or the continuation of the reversal. The change can be a sudden shift or can take days, weeks, or even years to materialize.
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⚠️ NOT FINANCIAL ADVICE DISCLAIMER:
This video is for educational purposes only. Please do your own research before making any decisions with your money. I will not be held liable for any losses or gains you may experience. I am not your financial or investment advisor. This is completely educational content and should be taken as such – the views expressed in the content are opinions. Nothing on this channel should be taken as a recommendation to buy a particular crypto asset. The information shared on this channel is not indicative of future results. Analyses are not absolute and are prone to change in accordance with present and future market events. Please do all of your own research before you buy any stock or financial product.

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