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 holding above 1.18 ahead of critical US data
EUR/USD is holding onto its gains, trading above 1.18 as the dollar remains on the back foot. ADP's US job report and the ISM Non-Manufacturing PMI provide critical clues toward the Non-Farm Payrolls. Fiscal stimulus talks and geopolitics are also in play.
GBP/USD trades around to 1.31 amid dollar weakness, ahead of data
GBP/USD is trading around 1.31, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. Services PMIs on both sides of the Atlantic are eyed.
USD/JPY bounces off weekly lows, holds steady near 105.70 area
USD/JPY witnessed some selling on Wednesday amid the heavily offered tone surrounding the USD. The upbeat market mood undermined the safe-haven Japanese yen and helped limit deeper losses. Investors now look forward to the US ADP report and ISM Non-Manufacturing PMI for some impetus.
Editors’ Picks
EUR/USD holding above 1.18 ahead of critical US data
EUR/USD is holding onto its gains, trading above 1.18 as the dollar remains on the back foot. ADP's US job report and the ISM Non-Manufacturing PMI provide critical clues toward the Non-Farm Payrolls. Fiscal stimulus talks and geopolitics are also in play.
GBP/USD trades around to 1.31 amid dollar weakness, ahead of data
GBP/USD is trading around 1.31, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. Services PMIs on both sides of the Atlantic are eyed.
USD/JPY bounces off weekly lows, holds steady near 105.70 area
USD/JPY witnessed some selling on Wednesday amid the heavily offered tone surrounding the USD. The upbeat market mood undermined the safe-haven Japanese yen and helped limit deeper losses. Investors now look forward to the US ADP report and ISM Non-Manufacturing PMI for some impetus.
BTC/USD is on the verge of a massive breakout towards $10,000 or $8,000
Bitcoin has already lost a significant portion of its dominance against other altcoins. After trading sideways for such a long time, many coins are taking advantage of the situation to create massive rallies.
XAU/USD bulls unstoppable, renews life-time highs near $2040
With ‘buy the dips’ emerging as the main underlying theme behind the gold (XAU/USD) price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.
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