is there a way to find out trend reversal is abt to occur, any indicator, candle patterns anything that can help identify a possible reversal of trend.
Thanks:confused:
You have a good start, there is not a single trend reversal indicator otherwise we would all be rich by now. You have to look at trend lines, fibos, stoch, macd, volumes. Probably a hundred other indicators and in the end it is still not 100%.
ok not 100% but wat abt 80-90% ?
Pretty funny! I have noticed that getting 70% is pretty easy. It almost doesnt matter what system you use to get 70%. The main thing is money management. Follow my post “lets do an experiment” to see how well it works.
Try also a candlestick morning or evening star pattern placed right on the edge of the upper or lower Bolinger bands. The probability of the Bolinger band being exhausted here is very high and, since you are at an extreme, the probability of price action returning towards the centre is very high.
Do a two stage entry to get the best possible entry and do not get too greedy.
Regards, Tymen Wortel, Perth, Western Australia.
Hi Traders
I might have something,
RSI set to 8
SMA set to 8 of the RSI above (sma plotted over the rsi)
and a 20 period SMA over the RSI 8 and SMA8
Time Frames 1Hour upwards
When the rsi8 crosses the 8sma from below and the cross must be under the 20sma (candle must be complete) then Buy
When the rsi8 crosses the 8sma from above and the cross must be above the 20sma (candle must be complete) then Sell
Hope this is not too complicated
Successful Trading…
watch for key levels of support and resistance, i like to watch for even numbers like 50, 80, 00 levels of price. sometimes there is a bounce.
RSI and stochastic sometimes help to pick tops or bottoms.