entrystop loss will be discussed a bit later) before the bigger down move eventually. Lets look at an example. I do not hold short-term trades through earnings announcements. Downtrend reversal trade: Price is in a downtrend. The price moves into the retracement area (between.5 and.9) and consolidates there for 4 sessions. It is in an uptrend, (following a reversal from a downtrend shown in one of the charts below) and has a big up wave followed by an even bigger down wave. If the price breaks below the consolidation we do nothing. Respectively, these signal that a downtrend could be over or an uptrend could be over. This would be an alternate entry point. Get access to exclusive algo-trading content and events!
Vantage Point Trading The Strong Trend Reversal Trading StrategyThe Strong Trend Reversal Trading Strategy. A wave lower occurs that is bigger than the last up wave. We dont hold through earnings because the increased volatility makes it very hard to control our risk on the trade via our stop loss, which will be discussed a bit later. This is the area that we are going to look for a trade signal. It is only after the price keeps moving up, and we see the decline in September was pretty insignificant, that we connect the retracement tool from the July low to October high).
It wont always work out that well, but sometimes it does. Keep reading if this doesnt make sense, it will in a second. The price retraces between about 50 and 90 of that upwave. Preferably the up move is much bigger, faster and breaks the spirit of the downtrend. Enter a short trade if the price drops below colomba trovo hdpe e forex the consolidation low (we want to go short since the trend is now likely down). How to Spot Forex Reversal Patterns Your Progress 911 Contest The third key is to start with. On that down wave I have used a Fibonacci retracement tool to show the retracement zone. The price then drops below the consolidation, triggering our short entry.