One of the most reliable signals that an oscillator can provide is negative or positive divergences. By using this method the probability to spot a reversal in the existing trend is magnified, especially when the divergence occurs near or at a support or resistance. A negative divergence is when the price chart forms two consecutive […]Read More
Posts tagged "reversal"
A time stop is when we purposely exit a position after a period of time because the price is not moving in our favor. Time stops are mostly necessary in reversals, meaning when we want to go long when price visits a support or short when price visits a resistance. When price is near or […]Read More
The diamond chart pattern can signal a bullish or a bearish reversal or continuation of an existing trend. It represents a temporary battle between buyers and sellers. At its last part (lines E and H below) it is formatted from consecutive lower highs (indication that sellers have the upper hand) and simultaneously consecutive higher lows […]Read More