How to identify stock reversal?

I have drawn Trend-line, According to price action it generates buy signal. but stock reversed.
Can anyone explain please ?

Different concepts of Price action gives different views in a different time frame!

You are using a 1-minute timeframe.

This tells Round Bottom Breakout. [Buy]

This catches the trend reversion. Inside Bar Theory [Sell]

Refer Inside Bar Strategy - Unofficed


I will recommend not using a 1-minute timeframe as it is chaotic. You may like this detailed answer which tells about a reversal method along with its rationale and scanner

But, that uses an indicator for stock selection and price action for timing.

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The trend line worked perfectly but the profit had to be booked. If you see this way, it is following basic 101 of uptrend.


I have updated question with screen shot. please look into it. Actually i used buy signal which is last of the trend. & stock got reversed.

It is clean sell as per price action at that point based on basic concepts of trendline.

PS: You’re seeing supertrend I guess. As per supertrend, it “was” sell who got screwed.

buy near 200 ema and sell when your trend line breaks that will work 60 to 70 % of the time with risk reward.

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