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 holds onto highs despite souring mood
EUR/USD is trading above 1.22 but off the highs. US Durable Goods Orders jumped by 3.4% in January, better than expected, and jobless claims surprised with a fall to 730K. Q4 GDP upgraded to 4.1%, as expected. The dollar is down despite falling stocks and rising US yields.
GBP/USD advances towards 1.42 on dollar weakness
GBP/USD has been advancing as the dollar retreats despite higher yields and as markets cheer Fed Chair Powell's pledge to accommodative monetary policy.
USD/JPY: Bulls in control above 106.00, move beyond monthly tops awaited
USD/JPY continued gaining traction for the third straight session on Thursday. The formation of an ascending channel supports prospects for additional gains. Bulls seem poised to challenge channel resistance near the 106.70-75 region.
Editors’ Picks
EUR/USD holds onto highs despite souring mood
EUR/USD is trading above 1.22 but off the highs. US Durable Goods Orders jumped by 3.4% in January, better than expected, and jobless claims surprised with a fall to 730K. Q4 GDP upgraded to 4.1%, as expected. The dollar is down despite falling stocks and rising US yields.
GBP/USD advances towards 1.42 on dollar weakness
GBP/USD has been advancing as the dollar retreats despite higher yields and as markets cheer Fed Chair Powell's pledge to accommodative monetary policy.
USD/JPY: Bulls in control above 106.00, move beyond monthly tops awaited
USD/JPY continued gaining traction for the third straight session on Thursday. The formation of an ascending channel supports prospects for additional gains. Bulls seem poised to challenge channel resistance near the 106.70-75 region.
S&P 500: Day Ahead Outlook Inflation fears linger as doves hit turbulence
US equity markets look for direction on Thursday with mixed signals leading to steady and slightly lower trade. Inflation concerns haven't gone away as the US 10 year hits another year high at nearly 1.5%.
XAU/USD drops further to $1770 ahead of critical support
Gold dropped further during the American session and bottomed at $1769, the lowest level since last Friday. The metal erased weekly gains and is back below $1780 as US yields keep rising.
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