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  1. #1
    Rookie Member cedrane310's Avatar

    List of trend reversals(?) !!!

    Hi guys,

    I was wondering what other things could indicate/predict a reversal? I want to make my strategy (it's a trend following one) and I think knowing when reversals may occur would actually help me avoid those times. I don't want to make a trade following the trend where there are lots of things indicating a price reversal. I have listed some things that could indicate an incoming trend reversal:

    • Divergence
    • Overbought/Oversold levels
    • Pin bars
    • S/R levels


    Did I miss anything?

  2. #2
    Active Member RichardD's Avatar
    It is really hard to pick when a trend is going end, no wonder regular (and usually the successful ones) FX traders just follow the trend and adjust the stoploss to a closer location each time a new breakout happened (in most cases) and don't want to pick the highs and lows. So I'd say: don't bother with it; but if you really want to do it, ONLY pay attention to the S/R levels, and find these levels on an according timeframe (depending on your option expiry time).

    One other trend reversal thing may be approaching BRNs (Big Round Numbers), as usually a lot of orders are sitting around there.

  3. #3
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by cedrane310 View Post
    Hi guys,

    I was wondering what other things could indicate/predict a reversal? I want to make my strategy (it's a trend following one) and I think knowing when reversals may occur would actually help me avoid those times. I don't want to make a trade following the trend where there are lots of things indicating a price reversal. I have listed some things that could indicate an incoming trend reversal:

    • Divergence
    • Overbought/Oversold levels
    • Pin bars
    • S/R levels


    Did I miss anything?
    focus on the entries and then the reversals will start to appear .....trend following strategy trend following entries, don't worry about the reversals says I. ;-)

  4. #4
    Rookie Member cedrane310's Avatar
    Thanks for the replies guys. I just don't want to get caught in a reversal while I have an opened trade with the trend. Viewing the school section of BOTS, I found this strategy called Simple balanced system. And I think it has a really high accuracy when used with the trend. Still studying where and in what conditions would I have a bad signal (I think there would still be bad signals even when used with the trend... so maybe the key is to know how to filter out such signals) so I could avoid those. Looks like I don't have to make a strategy from scratch after all... maybe some modifications in the simple balanced system (or maybe with no modifications at all) will work for me just fine. Again thank you guys!

  5. #5
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by cedrane310 View Post
    Thanks for the replies guys. I just don't want to get caught in a reversal while I have an opened trade with the trend. Viewing the school section of BOTS, I found this strategy called Simple balanced system. And I think it has a really high accuracy when used with the trend. Still studying where and in what conditions would I have a bad signal (I think there would still be bad signals even when used with the trend... so maybe the key is to know how to filter out such signals) so I could avoid those. Looks like I don't have to make a strategy from scratch after all... maybe some modifications in the simple balanced system (or maybe with no modifications at all) will work for me just fine. Again thank you guys!
    there are always bad signals, no 100% methods here. And with binary you don't have to worry so much about open trades, you gerneally cant sell them early anyway.

  6. #6
    Rookie Member cedrane310's Avatar
    Quote Originally Posted by Michael Hodges View Post
    there are always bad signals, no 100% methods here. And with binary you don't have to worry so much about open trades, you gerneally cant sell them early anyway.
    I agree. I guess I've been worried over nothing hehe... thanks for reminding me anyway. Time to study more!

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