Confirming reversal structures is one of the trickiest parts of price action theory. Reversal structures reflect momentum exhaustion. Those who don’t understand structures will keep chasing highs, while those who do often jump in too early without waiting for confirmation. A lot of people see double tops/bottoms, three-push wedges, or even a single reversal candlestick and immediately start shorting. But the real issue is: the appearance of a pattern ≠ a reversal has occurred. What reversal structures actually tell you is: the original trend is showing signs of momentum exhaustion. Take the three-push pattern, for example. On the first push, price rises easily and makes a new high. On the second push, it still makes a new high. But by the third push, price is still climbing, but the upward momentum is noticeably weaker. At this point, the significance of the “three-push” isn’t: “It’s definitely going to drop here.” Instead, it’s: “The bulls are still pushing, but their ability to drive prices higher is weakening.” So don’t short just because a reversal structure appears. You need to wait and see if the market truly shifts between bulls and bears. This is the key to confirming a reversal. The entire process is essentially: trend continuation → momentum exhaustion → reversal structure appears → wait for market confirmation → breakout confirmation → reversal established. If you can’t identify strength and weakness before the breakout to make higher risk-reward trades, then waiting for confirmation before entering is the rule to avoid jumping in too early. The confirmation points for different structures vary: 1️⃣ Single candlestick reversal → closing price of the previous candlestick 2️⃣ Double tops/bottoms or head-and-shoulders → neckline 3️⃣ Three-push/wedge → trendline/support #PriceAction #AlBrooks #TradingRange #价格行为 #技术分析 #交易