Trend reversal patterns are 'sadly' taught to beginners as 'candlestick patterns'. The problem with this is a) you never learn to read price action, or order flow, and b) you get stuck looking for patterns that don't happen often, thus missing many reversals or transitions in the price action. In today's trading video, we discuss a trend reversal pattern and how to read it in the price action + order flow. We also discuss how this pattern can be great for finding trend transition trades, potential breakout setups, and when a corrective structure is going to end.
Visit our website at 2ndSkies for more price action content, free trading lessons, strategies and videos and find out how we can help you to change the way you think, trade and perform.
Trading Foreign Exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advisce from an independent financial advisor if you have any doubts.
Editors’ Picks
EUR/USD rebounds after dismal US PMIs
EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates.
GBP/USD advances to 1.2950 after US data
GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates.
USD/JPY retreats from highs amid coroanvirus fears
USD/JPY has fallen from 112 as coronavirus fears trigger safe-haven flows into the yen. Investors are shrugging off disappointing Japanese figures.
Editors’ Picks
EUR/USD rebounds after dismal US PMIs
EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates.
GBP/USD advances to 1.2950 after US data
GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates.
USD/JPY retreats from highs amid coroanvirus fears
USD/JPY has fallen from 112 as coronavirus fears trigger safe-haven flows into the yen. Investors are shrugging off disappointing Japanese figures.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway
The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.
XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz
XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.
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