Reversals Strategy

A basic strategy to use with Reversals is to combine a trend indicator to filter signals, and use stop orders for price confirmation. Use it with a Dynamic Trend of period 200 as a filter, and use different sensitivities in the same chart, for entries and exits. For entries you should use a sensitivity between 6 and 8, and for exits you should have the sensitivity 8 and 9 loaded in the chart.
The template below load the indicators in the following manner:
Blue Arrows: Arrows to go long, or close short positions

Red Arrows: Arrows to go short, or close long positions

Orange Arrows: Arrows to close positions only

» Download Template (requires Reversals and Dynamic Trend (free) indicators)


Short Entry:

  1. Dynamic trend is red
  2. There is a red arrow
  3. Set a sell stop-order below the low of the reversal bar. The expiration shouldn’t be more than 3 bars.

The inverse is valid for long trades.

Reversals Strategy in GBPUSD M15
Other exits:
In case 15+ bars have passed without an opposite Reversal or any significant movement, the trade should also be closed. Other exit criteria should be implemented by the trader such as a stop-loss/take-profit.