Saturday, 11 October 2025

Reversal and Continuation bias


✅ Strategy 1: Reversal Bias

Objective: To anticipate a potential reversal after a failed breakout.

Price Action Logic:

If the current weekly candle breaks above the Previous Week High (PWH) but: ➤ Closes below that high,

This indicates liquidity grab behavior, where price moves above the previous high to hunt stop orders, but fails to maintain strength.


Expected Outcome:

The price is likely to move downward in the following week.

Potential target: Previous Week Low (PWL) — to draw liquidity from that area.


> Summary:
Failure to close above the previous high = sign of weakness = bearish bias for the upcoming week.




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🚀 Strategy 2: Continuation Bias

Objective: To anticipate continuation of the current trend after a successful breakout.

Price Action Logic:

If the current weekly candle breaks above the Previous Week High (PWH) and: ➤ Successfully closes above it,

This means that buyers have maintained control and closed the market above former resistance.


Expected Outcome:

The price is likely to continue rising in the following week.

Potential targets: higher price levels — based on upcoming supply zones or liquidity areas.


> Summary:
Successful close above the previous high = sign of strength = bullish bias for the upcoming week.




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