How to identify trend reversals in Forex

Yeah it was 3.3: 1. I'm out since the trendline was breached. I find that sticking to my trading rules eliminates frustration vs being right. Hope and fear seem to be non-issues.

Well, I agree that support and resistance levels are great entry/exit levels. When combined with a diagonal trend line you can easily see those S/R levels. The new trader would draw lines and when price goes to the trend line (during a pullback), he would enter his trade. This area usually is a resistance level (horizontal line).

The new trader (if he is using the 4 hr chart) can look at numerous pairs and go back several months to train his eye, to identify those setups. Just like everybody else, for future trades he just has to keep looking for setups.

How this benefits the thread is that it's a simple way to identify reversals and trends. Just lines. Wanna throw in Fibonacci levels using last weeks highs and lows? It's gets pretty easy just like the board veterans said 5 years ag when I first started looking into forex.

Nah not for me.

For the benefit of the thread, however, I'll repeat the original point with some chart continuation.

Losses are a part of trading and I don't mind showing them. Yesterday I traded into what I felt was the turning point of the EURCAD M15 "trend". It was an early entry, miscalculated PA that resulted in a controlled loss. The "heads up", however, was the break and retesting of local S/R illustrated with the smaller yellow line.

I do plot targets based on S/R but I never take entries off of S/R or trendlines. In my experience it's been better to use the S/R as plot points to gauge the market turns (subject of this thread) then trade confirming PA on retests - in other words, price action at support/resistance (there's even a commercial thread on this very subject but I wouldn't ever recommend anyone pay for any kind of "education" in trading unless the provider can issue provable results).

The basic simplicity of S/R is often ignored (I'm not suggesting you're doing this by the way). But I agree with your "signature", a trader needs to work through the hard stuff to see it clearer - and that even goes for S/R. I'd never say it's easy though; I still struggle nearly five years in. Let's see what happens at this blue box.

Ending diagonials, head and shoulders formations, double and triple tops, candlesticks that show the slowdown of a trend. Also supply and demand and big changes of volume with price moving away from the last mentioned areas is a very good signal for a reverse.

That's what I always used to focus on ... I would then enter and start thinking what to do about the exit.

But recently I have come to the conclusion that it's the exit I should focus on before I enter. If I can determine where the 'minimum' exit is likely to be, then deciding on entry is a piece of cake!

Now, I assume that that's what you are saying, too - or is there something that I am still missing?

Thanks (in anticipation), Karel

If you are trying to pinpoint market bottoms and market tops/trend reversals, they behave differently. What works for market bottoms might not necessarily work the same with market tops.

Thize iz one of tzem ........ and ofcoorzz Fedzzyy

u cant judge the trend today :-)

and how much you made off of ''tzem'' ?