I honestly don’t know of a reliable indicator that suggests a reversal before trend has reversed.
But maybe you don’t mean reversal anyway. Reversal means an uptrend becomes a downtrend. That cannot happen in 1 day so price will almost always show an indication before the new trend. But trends can weaken in 1 day and when it weakens enough I exit anyway. This is usually a long way from my stop-loss so my maximum risk is not usually reached.
Of course, a good place to enter a trend is right after it has weakened, when it starts to resume. So sometimes I find the trend weakens, I close my position and the very next day I can get back into the same trend.
I am currently applying Bob Volman’s price action strategy to the D1 charts, and very much enjoying it. I made an effort to start a discussion about it here, but there did not seem to be much enthusiasm for the topic. This not terribly surprising, as Volman is writing for traders that are already profitable with other systems, and they (by definition) already have systems that they like. So the audience for a thread likely that is limited.
Nor would I direct new traders to Volman, or price action trading in general. Mark Douglas talks about the three stages of a trader’s development: the mechanical stage, the subjective stage, and the intuitive stage. Because price action trading is inherently subjective, it fits easily into the second and third stages, but rather uncomfortably into the first stage. A simple indicator based strategy does a much better job of getting a new trader through the mechanical stage, and you can find my thread about the strategy I used here.
While I am happy to pass on this information, I will point out what every profitable trader points out: your results, even with an identical system, will not be the same as my results. This is what makes passing on winning strategies so difficult, and why successful traders generally have very little interest in other people’s strategies. I think the best explanation as for why this is was by Al Brooks, when he talks about the Trader’s Equation.
Gooday! Thanks. really suprised to hear that a swing trader coud trade everyday and make profits everyday. i thought one would have to wait forever like me to find that setup in time frames like H4 and D1 that takes forever for a single candle to form.tempting me to check out the disastrous M15 again.
It’s really interesting that you pointed out exit rules for profitable positions. Do you have any suggestions on when to take profits when the TP seems to be unreachable?
I have read the whole pypsology course no matter how you put it and there are lof of things which may reallly stop you. So please take this all in account please. I do hope we will battle all issues together, cause that way we are much much stronger.