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: Hovers near 1.2150, Thursday's candle suggests scope for minor pullback
EUR/USD is trading near 1.2150 in Asia, representing a more than 1.5% gain for the week. While the pair ticked higher for the third straight day on Thursday, it created a candle with a long upper wick validating the above-70 or overbought signal on the 14-day RSI.
GBP/USD drops back from yearly highs at 1.3500 amid Brexit nerves
Brexit nerves have triggered a drop from year-to-date highs reached on Thursday of 1.3500. The pair still closed Thursday FX trade with gains of over 80 pips or 0.6%. Talks apparently went badly on Thursday, with level playing field issues reportedly causing problems.
USD/JPY: Bearish bias across Monthly, Weekly charts
USD/JPY trapped between daily support and resistance against bearish backdrop. Yen is under pressure across the longer-term time frames and is trending within a weekly channel to the downside.
Editors’ Picks
EUR/USD: Hovers near 1.2150, Thursday's candle suggests scope for minor pullback
EUR/USD is trading near 1.2150 in Asia, representing a more than 1.5% gain for the week. While the pair ticked higher for the third straight day on Thursday, it created a candle with a long upper wick validating the above-70 or overbought signal on the 14-day RSI.
GBP/USD drops back from yearly highs at 1.3500 amid Brexit nerves
Brexit nerves have triggered a drop from year-to-date highs reached on Thursday of 1.3500. The pair still closed Thursday FX trade with gains of over 80 pips or 0.6%. Talks apparently went badly on Thursday, with level playing field issues reportedly causing problems.
USD/JPY: Bearish bias across Monthly, Weekly charts
USD/JPY trapped between daily support and resistance against bearish backdrop. Yen is under pressure across the longer-term time frames and is trending within a weekly channel to the downside.
Bitcoin price majestically rockets past $18,000 as $20,000 beckons
Bitcoin rally is in full swing as investors anticipate a final leg up to $20,000. The flagship cryptocurrency has in the last couple of weeks broken key barriers to top $18,000 on Wednesday towards the end of the Asian session.
Gold fades upside momentum towards $1,850 amid mixed catalysts
Gold prices ease from $1,842.36 as risk-on dwindles. The yellow metal rose to the nine-day high the previous day as the US dollar weakness, coupled with the market optimism, favored the bulls.
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