How to Understand the Confirmation of Reversal Structures in Price Action Analysis Yesterday, I wrote about gold dropping, but it seems like many people don’t understand how this structure confirms a reversal. In fact, no matter what kind of reversal it is, there’s always a confirmation process. The universal hard rule is the previous close of a single candlestick, or the neckline/support/trendline break of a double top/bottom, three pushes, or wedge pattern. But this so-called hard rule is essentially just part of the confirmation process. Take yesterday’s 4-hour gold chart as an example. After the three pushes, gold didn’t immediately drop. Its upward momentum was still present. It wasn’t until it failed twice to break above the previous highs at the confirmation level and then broke the trendline that the downtrend was confirmed. If you can understand this confirmation process before the hard rule is triggered, your short positions will actually have a very high risk-to-reward ratio. Trading $XAU #AmericaD Ethereum: 0x68749665ff8d2d112fa859aa293f07a622782f38