#ArbitrageTradingStrategy 🔄 BTC Day Trading Strategy #4 – Reversal Trades at Key Levels

Reversal Trading means spotting when BTC might stop trending and reverse direction, often at strong support or resistance levels.

🔍 How to Trade BTC Reversals:

1. Mark key support & resistance zones on the 15-min or 1H chart.

2. Look for reversal candlestick patterns (Doji, Engulfing, Pin Bar) at those zones.

3. Confirm with RSI (overbought/sold) or MACD crossovers.

✅ Example:

BTC rises to $61,500 resistance, forms a bearish engulfing candle → Enter a short trade → Target $60,800 → Stop-loss at $61,700.

📌 Pro Tip:

Reversals are riskier than trend trades. Use tight stop-losses.

Wait for price confirmation, not just patterns alone.

BTC day traders use reversal trades to catch turning points and avoid chasing trends too late.