Powerful Reversal Strategy

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In this video tutorial, we will be covering this powerful reversal strategy.

Reversal strategies are extremely powerful because the risk is minimal… especially after the price is already well beaten up.

And we want to get into position when move is already dying. And typically with reversal strategies,  we go against what the crowd thinks.

So let’s get started on this reversal strategy.

We will be using the envelope indicator and Accelerator oscillator combination to pin point market reversal.

This strategy is suitable for 1H and 4H time frame. You can also use lower time frames but it’s best with 1H and 4H.

For a long position, what we want to see is that after a drop in price, we want the price to move back into the lower band of the envelope.

Then we want to see that the accelerator oscillator moving away the Zero line with a green bar.

With this 2 align, then the buy signal is triggered.

As for the stop loss, it’s recommended that the stop loss be set at the previous low (take a look at the video tutorial).

And also use trailing stop loss instead of setting a take profit target.

Because with reversal strategies, this is where big profits are made.

Some reversals can be so strong that we do not want to take profit prematurely.

For sell positions… it’s similar… just then mirror image of the buy position.

We explained this clear in this video. Do take 15 minutes to review it several times to make sure that you are implementing it correctly.

The download link for the trading template is below. Before you can download the trading template, kindly share our page.

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[sociallocker]Here’s the download link for this reversal strategy trading template. [/sociallocker]