How To Spot A True Reversal

How To Spot A True Reversal 

• Look for the Possible Swing Candle

This is the 3rd candle in the 5 candle Pattern. A Swing High = 1candle. Higher with 2 candles lower on each side. A Swing Low = 1 candle Lower with 2 candles higher on each side.

       

• Look for Consolidation at a Fib Level

Consolidation is 2 or more candles in a given area

• Look for Reversal Candle (RC) Pattern and Break

- Pin Bars 
- Inside Bar
- 2 Bars Reversal
- Failure Swing Top / Bottom
- Reversed Pivot Top / Bottom
- Naked Reversal
- CPR (Closing Price Reversal)

• Last Swing will be between 30-60 pips if No News is Attached

• Slow Stochastics (SS) Agreement

12:00 – 2:00 Angle for a Long
4:00 – 6:00 Angle for a Short

If a trader is doing the above correctly, the trader should be winning more than they are losing.To be more consistent in picking winning trades, there are Other Factors that require a Live Mentor.
Proper Trend Identification, Time of Day, Session being traded, News, Daily Range, and Recovery Strategies, are all techniques that you will first need to understand. 

There is no substitute for face time and continued practice, once these techniques and strategies are understood, a mentor can greatly reduce a traders learning curve.