![]() ![]() ![]() Instead, we wait for the reversal, to trade the opposite direction. They are powered by Trade-Ideas.ġ0 Reversal Trading Strategy If we see a stock has just made a strong move, either to the upside or the downside, we may feel we ve missed the opportunity to jump on the momentum. I look for indicators of extremes including: High RSI (above 90), Low RSI (below 10) A candle outside the Bollinger Bands 5-10 Consecutive Candles ending with Pin Bar or a DojiĨ You Will Learn How to find reversal setups using Stock Scanners How to Read Bollinger Bands to find Extremes Using Pin Bar Candle Sticks to take an entry Understanding where to set stops & profit targets How to trail your winnersĩ How to Find These Setups Use High of Day and Low of Day Scanners with RSI Filters - We provide our students with these scanners. Rubber Band Concept Stretched out, need to bounce back!! In order to trade reversals you must be able to identify them in real-time, and understand your risk vs reward!ħ Only Trading Extremes The key for success with Top and Bottom Reversals is that we must trade extremes. Instead of trying to predict the next big mover, we let the moves happen, find them on our scanners, then short the tops or buy the bottoms. Our stop will always be at the high or low or day which means our risk will be very low relative to our profit potential. We look for reversal opportunities on stocks that have just made extreme moves to the upside or the downside. Reversals are best on higher priced stocks which means it s not a strategy that can be easily traded by students with smaller accounts.ĥ The Advantage of Reversals It s difficult to anticipate when stocks will make big moves, but we know that almost all big moves eventually are corrected. 2 Today you will Learn Reversal trading strategies are great or mid-day and afternoon trades, especially on days when momentum is a big slower.ģ Why Is This Important? Reversal trades provide the opportunity for massive profits because the best reversal can offer cent stops and multi-point runs. ![]()
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