[Reversals: Things To Watch For]

[Soultrader 12]

Quick video on simple levels, internals to watch for on reversal setups.

 

Classic textbook stuff such as low volume tests, gap fills, LOD, and higher lows on TICK.

 

CLICK HERE TO VIEW VIDEO

 

 

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[Nick1984 10]

Nice video as always.

 

Currently I can't get TICK data so I can't use the hooks etc as confirmations of reversals and subsequently I'm having a hard time actually picking the bottoms. That example you gave early on where lots of people who got in on the red candle to get stopped out before the reversal describes me very well!

 

Do you have any other tips on how to spot the reversal without the TICK crutch? ATM all I really do is just use the volume, but recently the volume on the YM has been acting a big sporadic and hard to predict.

[Soultrader 12]

Hey Nick,

 

Have you looked into time based reversals. For example on the YM how often do we see reversals around 10:00am EST to 10:30am EST. Check for volume drying up and you can expect a reversal around these times.

 

For the afernoon, the markets will usually continue in the initial morning direction or turn around. This tends to occur after 1:30pm EST to 3:00pm EST. You can build some type of reversal strategy in this period.

 

If volume is your main source I suggest paying careful attention to decreasing volume especially on lower lows.

[Nick1984 10]

Thanks for that James

 

Got my exams coming up now so trading has gone on the back foot for the next few weeks while I try to study. Will have to put in some market studying time once things settle down. Only still in my first month on the YM so it'll take a while to start spotting its little habits!

[oXo 10]

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