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: Bull pennant in play above 200-SMA
EUR/USD picks up bids after a subdued performance on Monday. After a dull start to the week, EUR/USD gains upside momentum, poking 1.1875 amid the early Tuesday morning in Asia. Weaker Momentum line challenges the up-moves but pennant confirmation could propel the buyers.
GBP/USD under pressure but around 1.3900
UK Marking Manufacturing PMI improved to 60.4 in July. Tensions related to the Northern Ireland Protocol undermine the pound’s demand. GBP/USD is at risk of falling in the near-term, mainly once below 1.3865.
USD/JPY bears not done yet
US Treasury yields plummeted as investors seek for safety. Japan is set to publish July’s Tokyo inflation, with the core reading seen at 0.%. USD/JPY has accelerated its decline, could fall towards the 108.00 level.
Editors’ Picks
EUR/USD: Bull pennant in play above 200-SMA
EUR/USD picks up bids after a subdued performance on Monday. After a dull start to the week, EUR/USD gains upside momentum, poking 1.1875 amid the early Tuesday morning in Asia. Weaker Momentum line challenges the up-moves but pennant confirmation could propel the buyers.
GBP/USD under pressure but around 1.3900
UK Marking Manufacturing PMI improved to 60.4 in July. Tensions related to the Northern Ireland Protocol undermine the pound’s demand. GBP/USD is at risk of falling in the near-term, mainly once below 1.3865.
Gold: Risk-on and record low real yields underpins the yellow metal start of week
Just ahead of the closing bell on Wall Street, XAU/USD is trading at $1,816.00 and higher by 0.1% after travelling from a low of $1,805.87 to a high of $1,819.56.
BTC and XRP correct in time versus price as ETH remains unstoppable
Bitcoin ends three-month decline with a compelling 18.35% gain in July while ETH is working on a historic 13 consecutive up days. XRP closed last week with the best weekly return since the end of April.
Looking ahead to payrolls as markets bounce on China / US truce
Equity markets have started the week on an upbeat note, after a bumper round of earnings reports in recent sessions have helped to boost sentiment.
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