Today's post is about
Reversal Trading Strategy
Reversal trading relies on your timing and accuracy in analyzing candlesticks.
If the market is going down and there is a reversal candlestick (like a Hammer or Doji), this could be a signal that the market will reverse its direction.
What do you do?
First, look for the candlestick in strong support or resistance areas.
Second, wait for confirmation with the following price movement.
3. If everything is clear, enter the trade with good capital management.
Of course, if you were stronger in trading and could enter with other strategies or indicators, that would be even better, and you would use the strategy only to confirm the direction, nothing more.
Reversal strategies are easy and simple, but a basic and important condition is to apply them on larger time frames and at support and resistance areas to achieve strong and real results.
Good luck, my dear ones 👑