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 […]
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The importance of time stops in reversals
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 MoreThe diamond chart pattern
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 […]
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