Difference between reversal and retracement:

Difference between reversal and retracement:

Assalam alaikum dear members! umeed hai aap sb khair khairiat se hn gy or apki trading bahut achi jaa rahi ho ge> dear members trading k doran aksr hmary sth aisa hota hai k hum jskoreversal smjh k trade lety hain market wahan se reverse ni hoti or baad main pata chlta hai k ye to market retrace kar rahi thi or estrha hamen loss hota ha. agar hum loss se bachna chahty hain to hamen es main reversal or retracement ka frk smjhna ho ga taa k hmari trades profitable hn. es lye aj ki post main hum reversal or retracement k frq ko smjhen gy. What is retracement? Dear members jb market kisi trend main move karti ha jesa k uptrend to market seedha seedha opr ni jati bl k market opr nechy zig zag ho k ya koe pattern bna k opr jati ha. Jb market uptrend main ho r thora nechy ay phr opr jay estraha ki wave bnati ha or nechy ki movement ko retracement kaha jata ha. or es movement main market higher highs or higher lows bnati ha jb tk market apny low ko break ni karti to esy retrecement hi kaha jata ha. estrha uptrend main hamen hr retracement k bad buy ki trade leni chahye na k retracement py sell ki baz mrtba traders retracement py sell ki trade le lety hain or loss kr bethty hain. What is reversal? members jb market apna koe trend change kar k dosry trend main jati ha to esy trend reversal kaha jata ha. jesa k market agr downtrend main ho to market lower lows or lower highs bnati ha or jb tk aisa chly ga to trend continue rhy ga or jb market apna high break kr k opr ki trf jygi to us wqt trend reverse ho jyga or market downtrend se uptrend main chli jygi. market ka trend reverse ho to es main hum opposite trade lety hain or es main achi trade milti ha. How to identify retracement & reversal? members retracement or reversal ko identify karny k lye hum technicals tools use kar skty hain jesa k agr market apny trend main move kar rhi ha or jb tk market apny lows or highs break ni karti to reversal ni hota or retracement hi hoti ha. or es k ilawa Fibonacci retracement indicator best tool ha jo k market main reversal or retracement ki identification main use hota ha.es indicator main hamen differnt ratios di jati ha or es indicatoe ko swing low se swing high tk lgaya kata ha kr agr market 61.8% se zada retrace kar jy to es reversal kaha jata ha agr market 61.8% se opr hi rhy to esy reversal kaha jata ha or expect kia jata ha k market apna trend continue kary ge.

Reversal & Retracement. In Forex Forex trading mein, traders ko market movements ke liye dekhna zaroori hai. Iske liye, reversal aur retracement do important concepts hain jo traders ke liye bahut important hote hain. Iss article mein, hum in dono concepts ko Roman Urdu mein explain karenge. Reversal Definition. Reversal ek market trend hai jahan current price direction change ho jata hai. Yeh usually long-term trend mein dekha jata hai aur iska matlab hai ke market ka trend kisi ek direction se dusre direction mein change ho jata hai. Jaise ke agar market uptrend mein hai aur phir sudden downtrend mein chala jata hai, toh yeh reversal trend hai. Retracement Explained. Retracement ek short-term trend hai jahan market price apni current trend ke against kuch time ke liye move karta hai. Iska matlab hai ke agar market uptrend mein hai toh, iske baad kuch time ke liye price downward trend mein chala jata hai phir wapas uptrend mein chala jata hai. Retracement trend usually 50% se 61.8% tak rehta hai. Reversal and Retracement Difference. Reversal aur retracement dono hi market trends hai, lekin dono mein bahut farq hai. Reversal long-term trend hai jahan market ka trend direction change hota hai, jabki retracement short-term trend hai jahan market price opposite direction mein chala jata hai aur phir wapas apni current trend mein chala jata hai. Kuch traders dono trends ko confuse kar lete hain, lekin dono hi alag-alag hote hain aur inhe identify karna zaroori hai taki traders ko apne trades ke liye better decisions lene mein help mil sake. Main Facts. Reversal aur retracement dono hi important market trends hain jahan traders ko market movements ke liye watch karna zaroori hota hai. Dono hi alag-alag hote hain aur inhe identify karna bahut zaroori hai taki traders apne trades ke liye better decisions lene mein help mil sake.

Reversal and retracement are both concepts used in technical analysis to describe price movements in financial markets, such as stocks, commodities, or forex. They refer to different types of price changes and have distinct implications for traders and investors. Reversal: A reversal is a significant change in the direction of the prevailing trend. It indicates that the current trend is losing strength and momentum, and a new trend is starting in the opposite direction. Reversals are often seen as potential trend-changing points on a price chart. There are two types of reversals: Bullish Reversal: This occurs when a downtrend changes to an uptrend. It suggests that the price is likely to start rising after a period of decline. Common bullish reversal patterns include "Double Bottom" and "Head and Shoulders Bottom." Bearish Reversal: This occurs when an uptrend changes to a downtrend. It suggests that the price is likely to start falling after a period of increase. Common bearish reversal patterns include "Double Top" and "Head and Shoulders Top." Retracement: A retracement, also known as a pullback or correction, is a temporary reversal in the price within an ongoing trend. It's a short-term price movement against the prevailing trend before the trend resumes. Retracements are typically seen as opportunities for traders to enter the market in the direction of the dominant trend at better prices. Retracements are often expressed as a percentage of the original trend's move. The most commonly used retracement levels are 38.2%, 50%, and 61.8% (based on the Fibonacci sequence). These levels indicate potential support or resistance areas where price might reverse and resume the main trend.In summary: Reversal: A significant change in trend direction, suggesting a new trend is starting. Retracement: A temporary pullback or correction within an existing trend, offering potential entry points for traders in the direction of the main trend. Both concepts are important tools for technical analysts and traders to understand market dynamics and make informed decisions.