These are pretty simple ways to determine if price is bullish or bearish based on observation and price behavior. Images are Bullish examples. The inverse will apply to Bearish scenarios.
Bullish Indications
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Zoom out to see if price is sloping up
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Bullish Market Structure - Higher Lows and Higher Highs
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Bullish Imbalance is respected
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Demand zones are respected
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Bullish BOS
Bearish Indications
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Zoom out to see if price is sloping down
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Bearish Market Structure - Lower Highs and Lower Lows
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Bearish Imbalance is respected
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Supply zones are respected
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Bearish BOS
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I have not, but it’s a good idea. Thanks for the suggestion.
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You can use these to read for possible price reversal also but I’d like to know what other ways you read if price may reverse please?
I would be hesitant to try to predict a reversal before it happens. It is better to wait for a reversal to happen and have confirmation that the reversal is legitimate and not a fakeout. Predicting a reversal is the like attempting to catch a falling knife. Confirming a reversal is like picking up a knife off the floor after it is no longer falling.
With all of the warnings out of the way, a change of character (CHoCH) indicates that a reversal may be occurring and a shift of market structure (SMS) is an indication that a reversal may occur in the near future.
What these would look like on a chart
CHoCH:
Bearish SMS:
One last warning: I would qualify a CHoCH based on market structure and I wouldn’t trade based solely on a SMS without additional confirmation.
Since this thread really isn’t about reversals this other thread may be helpful when evaluating a CHoCH: Market Structure - Know Your Change of Character (CHoCH)
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Thank you for your response! Oh I absolutely know you can’t predict what the market will do, we’d all be rich from the first day of looking at a chart
. This is why I purposefully used the words “may” and “possible” but I should have used proper terminology like you did. So, my fault. I am grateful for your input. Knowledge that will help us all be profitable for a lifetime. Gracias!
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I like all the ways of defining market direction which you have described in this post.
I personally use quite conventional methods which includes indicators and volumes. They helped me to understand what will be happening in the future, and at the same time it’s important to examine the biggest timeframe to behold the overall picture, in case it goes down to the paritulcar aasset.
So far, I will think of implementing the methods you have shared with us, thanks!
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Well those aren’t all the ways but it’s a good start for determining a directional bias by reading price alone.