How to Spot REAL Reversals vs. Fake Pullbacks 🔮📉
If you’ve ever chased a “bounce” only to get trapped,
This will change the way you see the market.
I’ll break it down step by step 🧵
A graphic with a blue and orange background split diagonally. White text reads "STOP GETTING TRAPPED!" and "Real Reversal vs Fake Pullback." A green upward arrow and line graph on the blue side, a red downward arrow and jagged line graph on the orange side.
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Reversal trades are the highest-risk, highest-reward moves in the market.
One perfect trade can pay for weeks of small losers.
But most traders get it wrong.
The question:
How do you know which bounces are real… and which are traps?
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First, let’s define the difference:
❌ Fake Pullback: Slow, hesitant, repeated tests of the level.
✅ Real Reversal: Swift, decisive price reaction with conviction.
Most retail traders can’t tell the difference until it’s too late.
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Here’s the catch:
A reversal without confirmation backing it is not valid.
I’ve seen traders chase “reversals” 10+ times a day…
Only to watch price fade and flush their capital.
Confirmation = conviction.
Confirmation = 3 Daily candle closes above the key support level
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Real Reversal Checklist:
1) Strong price reaction immediately after the level is tested- Buyers step in quickly
2)Clean, decisive candle close- 5min intraday candle closing near the highs
3) Higher lows on the daily chart
If one of these is missing?
Assume it’s a FAKEOUT.
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🚨 Pullback Warning Signs:
- Price lingers at the level for too long
- Multiple tests of the support/resistance
- Weak candle closes
- Lower highs on the daily chart
If you see this?
Patience is your edge.
Let others get trapped first.
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One subtle trick I use:
Wait for a daily candle close confirmation before entry.
A strong reaction looks exciting live…
But a candle that closes weak?
That’s a trap waiting to happen.
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Stop losses?
Use none. Size for zero
Or if you do use them…
Above/below the key level that caused the reversal.
Either way:
Risk management isn’t optional,
Even the best setups can fail.
The goal is surviving losses while letting winners run.
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Final takeaway:
- Strong reaction ✅
- Confirmed by higher lows on Daily candles ✅
- Plan your entry✅
Markets don’t owe you anything.
Your advantage is spotting the truth while others chase illusions.
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This method works for any key support or resistance level,
Across all timeframes.
It won’t work 100% of the time. No strategy does…
But it separates the winners from the rest.
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If you want to see me break down real trades live,
Showing reversals vs pullbacks,
I break all my ideas down in Elite Options Pro every week.
I personally drop insights on support/resistance and much more.
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