📢 Crypto Daily Update – August 3, 2025 | How to Catch Trend Reversals Early
🔄 Today’s Focus: Reversal Strategy Using Divergence + Break of Structure (BOS)
Catching a reversal at the right time can give you insane RR trades. Here’s a proven setup used by many institutional traders:
🧠 Reversal Strategy Steps:
1. Look for bearish or bullish divergence on RSI or MACD (e.g., price makes higher high, RSI makes lower high = bearish divergence).
2. Wait for a Break of Structure (BOS) in the opposite direction.
3. Confirm with a candle pattern (e.g., engulfing, pin bar).
4. Enter on the retest of that structure break or imbalance zone.
5. Target nearest support/resistance, with a stop below/above the entry wick.
📊 Example (XAUUSD 1H):
> Gold created higher highs, RSI showed bearish divergence → BOS at $2,312 → short after retest → TP hit at $2,284 ✅
⚙️ Works best on:
Timeframes: 15M, 1H, 4H
Assets: BTC, ETH, XAUUSD, major altcoins
💡 Tip: Add a volume indicator to confirm momentum shift at reversal zones.
#TrendReversal #CryptoStrategyToday #RSIDivergence #BinanceSquare