EURUSD has recently shown down Reversals across the different timeframes. In M30, where the rating setting 7 is working best for quite some time now, a down reversal was seen 1 hour ago.
Going down to M15, given that we have seen a reversal on an higher timeframe and using the filter of dynamic trend (200), this is a zone to look for down reversals. At the very least, closing any open long trades if the action develops that way. Here the rating 5 was chosen, but for more sensitivity, 9 could as well be chosen by its rating.
As it was noticed in CADCHF analysis, price was moving in a trading channel. In the above chart we see how the price has broken the upper limit of this channel. Break-out was made by high volume up-bar. Later price touched the trendline (very often once resistance is broken it becomes support) and continued to rise. There are several wide spread up-bars with high volume near the break-out. Background turned to strong and it was clear that pattern of moving in trading channel was changed. It was time to look for long trades.
- Background was strong
- Several strong signals (Demand and Minor Demand) before trend changed. Reversal also confirms these signals.
- Entry after dynamic trend turned from red to green
- Exit by reaching TP level.
Total: + 125 Pips
Right after my exit in the chart appeared weak signal and signal from Reversal indicator, price turned down.
Reversal indicator is looking for different patterns compare with VSA indicator and quite accurately detects price reversals in the chart. The best view of market can be achieved by using both indicators.
In this trade I will show how to use in your trading joint work of two indicators (VSA and Reversals) in order to significantly improve your chances for success. Trading becomes much easier with these indicators. As you can see Reversals with high accuracy shows places where price changes its direction. It may be used alone and as a good addition to VSA indicator (in this case you have the best view of the market).
- At the time of entry background was weak;
- Weak (Minor Supply) and reversal signals before trend change. Reversal signal confirms the signal given by VSA;
- Dynamic trend turned from green to red, entry while price didn’t move too far;
- Exit after reversal signal. Right after this signal on the chart appeared several strong signals, high volume and the price started to rise.
Total: + 41 Pips