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.

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Editors’ Picks

EUR/USD: A downside break of an ascending triangle looks imminent at 1.0500

EUR/USD: A downside break of an ascending triangle looks imminent at 1.0500

The EUR/USD pair is juggling in a minor range of 1.0518-1.0531 in the early Tokyo session. The confluence of the Ascending Triangle formation and Inverted Flag has strengthened the greenback bulls.

EUR/USD News

GBP/USD approaches 1.2260 hurdle ahead of BOE/Fed leaders’ comments at ECB Forum

GBP/USD approaches 1.2260 hurdle ahead of BOE/Fed leaders’ comments at ECB Forum

GBP/USD portrays corrective pullback from weekly low, snaps two-day rebound. Mixed concerns ahead of key data/events join firmer UK second-tier statistics to underpin recovery moves. BOE’s Bailey has a tough task but Powell’s recent failure to please hawks keep pair buyers hopeful.

GBP/USD News

USD/JPY slips beneath 136.00 on upbeat Japan Retail Trade, softer yields, focus on Fed’s Powell

USD/JPY slips beneath 136.00 on upbeat Japan Retail Trade, softer yields, focus on Fed’s Powell

USD/JPY consolidates weekly gains during Wednesday’s sluggish Asian session, refreshing intraday low around 135.90 by the press time. In doing so, the yen pair snaps a three-day uptrend around a one-week high.

USD/JPY News

Editors’ Picks

AUD/USD jumps above 0.6900 as Aussie Retail Sales surprise positively

AUD/USD jumps above 0.6900 as Aussie Retail Sales surprise positively

AUD/USD is picking up fresh bids, jumping back above 0.6900, as the Australian Retail Sales surprise to the upside with 0.9% in May. The US dollar eases alongside yields amid persisting risk-off mood. Powell eyed. 

AUD/USD News

USD/JPY slips beneath 136.00 on upbeat Japan Retail Trade, softer yields, focus on Fed’s Powell

USD/JPY slips beneath 136.00 on upbeat Japan Retail Trade, softer yields, focus on Fed’s Powell

USD/JPY consolidates weekly gains during Wednesday’s sluggish Asian session, refreshing intraday low around 135.90 by the press time. In doing so, the yen pair snaps a three-day uptrend around a one-week high.

USD/JPY News

Gold eyes further downside towards $1,800, Fed Chair Powell in focus

Gold eyes further downside towards $1,800, Fed Chair Powell in focus

Gold Price remains on the back foot around $1,820, despite the recent bounce off intraday low. In doing so, the yellow metal prints a three-day downtrend as traders await the week’s key data/events amid a sluggish Asian session on Wednesday.

Gold News

Compound price: You won't believe how high COMP can rally

Compound price: You won't believe how high COMP can rally

Compound's COMP price could be a very favorable digital asset in the coming weeks. This article is meant to inform investors of data excluded on Tradingview's Binance, Coinbase and Kucoin exchanges for reasons that have yet to be explained. 

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