Key Components of the Ice Reversal Pattern:
Breakout: Price breaks below the rising trendline, signaling a potential trend reversal.
Retest: Price briefly retests the broken support (now resistance), confirming the bearish reversal pattern.
Strong Drop: A sharp sell-off follows, offering a high-reward short trade opportunity.
How to Trade the Ice Reversal Pattern?
Entry: Sell after the retest confirms resistance.
Stop-Loss: Place above the retest zone to protect against false breakouts.
Take Profit: Target the next major support level for optimal risk-reward ratio.
Why Does the Ice Reversal Pattern Work?
This bearish reversal strategy traps late buyers and fuels aggressive selling momentum. By mastering this price action pattern, you can capitalize on trend reversals and improve your trading strategy.
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