Chapter 8. Reversal Trading Strategies -
Trading on reversals means entering the market just as a prevailing trend ends and a new trend begins. It offers massive profit potential by catching big moves early, but carries higher risk because you are trading against the immediate momentum. 🔑 Core Concepts of Reversals
Retracements are temporary pullbacks. Reversals are permanent trend shifts. chapter 8. reversal trading strategies
Moving averages smooth out price data to help traders identify the definitive start of a new trend. Trading on reversals means entering the market just
Never jump in on the first counter-trend candle. Wait for a follow-through candle to prove the new trend is real. chapter 8. reversal trading strategies