Trend Reversal Trading Strategy That Works
"How can I find and trade tops and bottoms?"
It's one of the most common questions I get from beginner traders.
The simple answer:
Follow technical analysis strategies and reversal signals that are proven to work.
Here's one of my favourite strategies to find major trend reversals:
By doing a quick analysis of the chart and finding levels where most traders will trade breakouts.
Then patiently wait and watch how price moves when the "breakout" happens.
If the breakout fails and you get a reversal signal, you have a high probability setup.
This strategy works on all markets and time frames.
I prefer it trading forex and stocks on the 1h and daily chart.
In the chart below, you can see an example of a trend reversal buy setup.
In the chart below, you can see an example of two trend reversal sell setups.
Both these trades would have giving you very high risk-reward ratio trades following the trailing stop loss strategy I explain at 2:00 in the video.
Tops and Bottoms Technical Analysis
The technical analysis for this strategy is very simple.
There are two ways to spot this tops and bottoms reversal strategy:
1. A horizontal support or resistance level
2. A sloping support or resistance level (trendline)
The connection points for these levels are tops and bottoms.
You need minimum two bottoms for a horizontal support line or trendline support to be drawn.
The trend reversal setup is triggered when the line is broken, and you then get a 10X signal in the opposite direction. This is a sign that the breakout will fail, and you have a high probability reversal setup. Trading this 10X signal and using a trailing stop loss often give you +10 risk reward ratio trades.
Trailing Stop Loss For High Risk Reward Ratio
When you trade reversals and looking to trade a nice price move.
I prefer to use a trailing stop loss to stay in the trade as long as possible.
Without risking to let my profits vanish if the trade reverse against my position.
The Moving Average Exponential (Length 8) is great for that.
Step 1. Launch chart.
Step 2. Click the "fx Indicators" tab in the top menu bar.
Step 3. Type in "Moving Average Exponential" and click on the blue text to add it to your chart.
Step 3. Double click on the Moving Average Exponential line on your chart to edit it.
Step 4. Change the Length to 8 in Inputs settings.
You can stay in buy long trades as long as price doesn't close below the moving average exponential and then move below the low of that candle (see more examples in the video) after a break to new highs.
You can stay in sell short trades as long as price doesn't close above the moving average exponential and then move above the high of that candle (see more examples in the video) after a break to new lows.
In the chart below, we see that we would still be in the trade and in a nice profit by following the sell short signals at the top and using the exponential moving average 8 trailing stop loss strategy.
the best Signal indicator for trend reversals
What is the reason 10X Trading System works?
It's because 10X signals is based on price action, trends, and levels.
It analyzes the market to find high probability entry points in real-time (non-lagging and non-repaint).
Of course, it will not work 100% of the time (no system will do that).
So don't fall for those "get-rich-quick" scams promising a 100% win rate strategy or signals.
Most 10X members see a win rate between 70-80% following the rules and strategies in the training.
If you're looking for a signal service, this is not for you.
But if you struggle with entries and patience sticking to a plan, 10X is probably for you.
Focus on learning the 10X strategies and rules in the training, and consistency and confidence will follow (as proved by hundreds of members).
Do You Want AccurateTrend Reversal Signals?
I'm a family guy in my early 30's who learned how to trade the markets in a simple yet effective way. During university, I studied investing and graduated with a master's degree in risk management. Quickly, I realized that I was onto something. I started helping friends and taking students. My students started getting results, spent less time in front of their screens, and their accounts grew consistently. Learn more about me here.
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