Five basic tools to spot bearish reversals or downtrend in trading

While news-driven movement in markets can be a bit difficult to gauge, but how the markets play out over a few sessions can be plotted on the charts to ascertain the overall trend

Markets move in waves, thus forming peaks and troughs. From a long-term perspective, corrective moves are said to be healthier and effective for a smoother trend. While one can capitalise on an upward rally by going long, identifying corrective moves can help in booking profits and entering short trades. 

Over the past few sessions, the markets have been spooked by coronavirus fears. Earlier this week, fears that the coronavirus outbreak in China will grow into a pandemic with disruptive and deadly consequences for countries across the globe spooked most equity markets. The virus, which has killed over 2,400 people in