We trade reversals only.
So, when in uptrend, we look for an opportunity to sell.
Sell 1 Rule: Bearish divergence with 2nd rejection confirmation
Price shows bull power but rsi shows bearish momentum. Wait for the price to come to channel line and wait for a bearish engulf. If seen, open order. SL is above swing high. TP is the high side of the parallel contraction area.
Sell Rule 2: Price highs are identical but RSI highs are falling. Must have 2nd rejection confirmation.
When price highs are identical but RSI highs are falling, It signifies potential price rejection. To be certain of the price rejection, wait for 2nd rejection confirmation. Engulfing action on the channel line confirms that bulls failed to take price to their side. Note if TP doesn't have at least 1:1 return, don't open order.
Note: we only sell during uptrends.
Now let's have a look at how we can Buy the market
Buy Rules 1: Bullish Divergence. Price highs are falling but RSI lows are rising. Must have 2nd rejection confirmation and TP with al least 1:1 return.
Price is falling but RSI is rising. Look for a 2nd bull push confirmation.
Buy Rules 2: when price lows are identical but Rsi lows show rising momentum, it signals potential bull market on the go but you need a 2nd rejection confirmation and your TP must have a minimum 1:1 before you can actually open an order
As you can see price have similar bottoms but RSI lows are on the rise. Must wait for 2nd rejection confirmation.
You need a pro or zero spread account with as low commission as possible.
Recommended Broker: https://www.hfm.com/sv/en/?refid=376050Use
Here's the video on how to properly draw uptrend and downtrend channel:
So, when in uptrend, we look for an opportunity to sell.
Sell 1 Rule: Bearish divergence with 2nd rejection confirmation
Price shows bull power but rsi shows bearish momentum. Wait for the price to come to channel line and wait for a bearish engulf. If seen, open order. SL is above swing high. TP is the high side of the parallel contraction area.
Sell Rule 2: Price highs are identical but RSI highs are falling. Must have 2nd rejection confirmation.
When price highs are identical but RSI highs are falling, It signifies potential price rejection. To be certain of the price rejection, wait for 2nd rejection confirmation. Engulfing action on the channel line confirms that bulls failed to take price to their side. Note if TP doesn't have at least 1:1 return, don't open order.
Note: we only sell during uptrends.
Now let's have a look at how we can Buy the market
Buy Rules 1: Bullish Divergence. Price highs are falling but RSI lows are rising. Must have 2nd rejection confirmation and TP with al least 1:1 return.
Price is falling but RSI is rising. Look for a 2nd bull push confirmation.
Buy Rules 2: when price lows are identical but Rsi lows show rising momentum, it signals potential bull market on the go but you need a 2nd rejection confirmation and your TP must have a minimum 1:1 before you can actually open an order
As you can see price have similar bottoms but RSI lows are on the rise. Must wait for 2nd rejection confirmation.
You need a pro or zero spread account with as low commission as possible.
Recommended Broker: https://www.hfm.com/sv/en/?refid=376050Use
Here's the video on how to properly draw uptrend and downtrend channel:
Inserted Video
Protect your capital