Get ready to understand continuation and reversal in the stock market! ๐
It's like predicting if the story will keep going or take a surprising twist! ๐
Continuation means the current trend will likely continue ๐
Reversal suggests a change in the trend's direction. ๐ค
Imagine riding a roller coaster ๐ข.
Continuation is when it keeps climbing, and reversal is when it suddenly goes in the opposite direction! ๐
For example, if stock A has been rising, it may continue upward. โฉ๐
If it's been falling, there might be a chance of a โreversalโ or changing to increasing prices โช๐
Reversal patterns indicate a change ๐ฎ
This means a decreasing stock may increase, or an increasing stock may start decreasing ๐๐
Many stock news reporters will use the terms "continuation" and "reversal" when they analyze their investments! ๐ฐ
Now, youโll be on the same page as the pros ๐
Congratulations on understanding continuation and reversal! ๐
Next, weโll learn about some basic patterns that can signal continuation vs. reversal ๐