Hello, I want to ask you, how to be sure is it one prive movement is correction or is trend reversal? Wich instrument to use to know is it correction or not? And only one more, can you advice me what to use to define when the trend is ends to exit from positon? I heard about Parabolic SAR that this indicator show when the trend reversal and when to exit of position, but it was very noisy.
Any other suggestions?
Thanks.
There is no indicator that can tell you for sure wether price is just retracing or the trend is reversing! If you find such a thing please don’t hesitate to let me know!!
The best way I would say to determine this is trading what you see, using price action and experience. For example in an uptrend you have higher highs and higher lows, if price retraces from a higher high and breaks through the previous higher low and creates a lower low, that could be a sign that the trend is reversing, among other things of course, but that Is a quick example of what I mean.
Sorry to say but there is no magic indicator that can point this stuff out for definite for you, I wold say it takes time and work to figure this stuff out! I don’t use indicators at all in my trading!
Hope this helps steve
Yeah, I know that is no magic indicator, but what you use to know is that correction or reversal, and when to exit from possition? I used S&R but the signals are very late… and the big profit is dropped.