Forex Trading Reversals – Very easy and simple Forex Intraday Trend Reversal Points Trading System with RSI and Moving Average Indicators. Trading reversals is made up of two-parts, one emotional and one part logical.
Emotional Part : The emotional part is that the trader’s ego loves to call the top or bottom. The error with this emotional approach is that often, if the facts go against ones beliefs, then so much for the facts meaning that in order to protect beliefs that a top or bottom is in play, a trader will often push ahead trying to prove their theory correct.
Logical Part : The logical part is that risk-reward is so favorable when trying to catch or trade a key turn. You often have heard how important risk to reward is to a trader’s ability to survive and thrive in their trading. Unfortunately, it’s easy to use Risk: Reward as an excuse for the emotional pull to attempt to buy the bottom or sell the top but at the end, this approach should either be avoided or traded carefully in a manner that will be soon explained.
Properly distinguishing between retracements and reversals can reduce the number of losing trades and even set you up with some winning trades. This Forex Trend Reversal Points Trading System can identify reversals easily. But they aren’t the only way. At the end of the day, nothing can substitute for practice and experience. And now, let’s go to the rules…
- Latest blue reversal point appeared below the uptrend candles
- Blue EMA 5 close upward and above upward red SMA 5 open
- Blue RSI 14 line upward cross MA 21 white line
- FXtrend blue.
- Latest red reversal point appeared above the downtrend candles
- Blue EMA 5 close downward and below downward red SMA 5 open
- Blue RSI 14 line downward cross MA 21 white line
- FXtrend red.
NEWBIE TRADER NOTE:
If you’re a new forex trader who is trying to find the best method for trading, you may benefit from staying away up-front from reversals. Instead, trading can better be learned by first, identifying the major trend and second, finding trading opportunities within the overall trend.