What's a Indices Trend Reversal Signal?
Indices Trend Reversal Meaning and Definition of Indices Trend Reversal
A indices trend reversal in indices trading is when the direction of stock indices trading prices change and start moving in opposite direction.
To identify this indices trading reversal setup traders use the indices trend reversal trading strategy of indices trendline break.
A indices trend reversal means that a up indices trend reverses and starts moving in a downward direction and for a indices trading down trend reversal the down indices trend reverses and starts moving in an upward direction.
Because a indices trend reversal is a change in the overall movement of stock indices price and not based on the movement of one indices candlesticks, indices traders use the indices trend reversal setup to determine when the indices trend has been reversed.
Up Indices trend Stock Indices Trading Reversal
When stock indices trading price breaks-out below the upwards trend-line (support) stock indices market will then move downward
Upwards Indices Trend-Line Break - Indices Trend Reversal Meaning and Definition of Indices Trend Reversal
This indices trend reversal trading signal is considered to be complete with formation of a lower high of the indices price. This also provides a trading opportunity to sell once the trend line is broken -indices trading reversal signal.
Down Indices trend Stock Indices Trading Reversal
When stock indices trading price breaks above downward line (resistance) the stock indices trading price will then move up
Downwards Indices Trend-Line Break - Indices Trend Reversal Meaning and Definition of Indices Trend Reversal
This indices trend reversal stock indices trading signal is considered to be confirmed with formation of a higher low. This stock indices reversal trading setup also provides a trading opportunity to open a buy indices trade once the trend line is broken -indices trend line reversal indices trade signal.
Indices Trend Reversal Trading Strategy
After stock indices trading price has moved in a particular direction for an extended period of time within a indices trend it reaches a point where it stops moving within the trend. When this happens we say that the trend-line has been broken and this is interpreted as a indices trend reversal signal.
Since the trend line is the point of support or resistance and this point of support or resistance has been broken after a indices trend-line break - we then expect stock indices trading price to move towards the opposite direction and this is interpreted as a indices trend reversal signal.
