Idea Discussion - Not catching tops and bottoms

We all know the “rule” to not try to catch tops and bottoms.
What I would like to do is ask you to share your ideas how would you TRY to catch top and bottom and then write some EAs and check what would be the performance if traded exactly opposite side :slight_smile:

More like a fun, thinking exercise. If there is such low probability for catching tops… maybe there is pretty high on taking the reverse signal? :wink: I will of course share any EAs and results which will be created as a result.

Cheers!

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I like this style of thinking but wouldn’t the reverse signal of a failed top/bottom simply be a trend continuation?

(apologies if I monotonously bang that drum)

That may be a trend continuation but it also can be a short move which is large enough to stop you out before real reversal. Aim is of course to take position in the direction of trend, but the idea is to use reversed top bottom catching thinking. For (naive) example - RSI is sometimes mistakenly used to sell on overbought conditions, so reversing this can give some results? You would not think of RSI overbought as of long trend continuation signal :slight_smile: I believe, that looking at familiar things from new perspectives has some potential.

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Sounds like a task for backtesting!!!

I try to catch them quite often :slight_smile: and it often goes relatively well. Just got to make sure all the indicators line up… and take profit before it turns back into a continuation