Retracement vs Reversal: How to Tell the Difference
Retracements and reversals look identical in real time. The structural difference tells you whether the trend continues - or has quietly already ended.
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Retracements and reversals look identical in real time. The structural difference tells you whether the trend continues - or has quietly already ended.
Momentum exhaustion is the quiet process by which strong trends lose their fuel before price visibly reverses. Understanding the mechanics helps traders recognize the setup before it's too late.