Home Trading Strategies Trend Reversal: 3 Powerful Strategies to Detect Trend Changes (BEFORE They Happen)

Trend Reversal: 3 Powerful Strategies to Detect Trend Changes (BEFORE They Happen)

Trend Reversal: 3 Powerful Strategies to Detect Trend Changes (BEFORE They Happen)

hey hey what’s up my friend so in today’s video I’ll share with you right practical strategies and techniques right that you can use to identify trend reversal in the markets I know right often most of you are thinking of buying media stock or trying to go along and the market has move up so much already and when the pullback comes right you’re wondering is this for real is this a pullback or is this the reversal of the trend okay so I’m going to share with you three things right that you can pay attention to to look for right to help you identify trend reversal in the market the first thing that I want to share with you is what I call the brick off structure so think about this right in a trending market let’s say an uptrend you know the price makes a series of higher highs and higher lows right now you can see over here right higher lows and higher highs so what do I mean by a break off structure so the break of structure means right there the first clue that the market is telling you that it’s about to get its Rick right or it’s about to reverse is when you have a break off structure where the price makes a new lower low and low or high so in this case all right this over here you have a lower high and a lower low so this sorry this uh this let me just redo this right this is not a very good example so we doing it right so uptrend okay market breaks down pulls back and then continued lower so now you have a lower low and a lower high this lower high is below this lower high over here so this right is the first clue to you that marking right it’s about to reverse lower it’s no guarantee right but it’s a clue given to you by the market that hey you know there is a break off structure the price could potentially reverse lower so let me share with you a few examples alright so this is the Bitcoin right you can if you’re you’re aware right in 2017 Bitcoin at DISA meteoric rise right to 20,000 right people are buying all right going long and you can see this strong parabolic move higher so now at what point right would you or rather would you be alert right at hey this trains about to reverse again the concept I just shared with you right an uptrend higher highs and higher lows so we are looking for a break of structure what you are looking for is a lower high and a lower low so at this point right what I see right say this is the area of support at this point you’ve actually gotten a lower high right this portion which is a low high and when price breaks below this area of support you have this lower low a lower high low a low so this tells you that hey you know this trend could be weakening right the trend could reverse right you really want to be careful down here and in fact right this pretty much kind of sealed the deal right as Bitcoin you know went to the loss of our 6000 over here so this would be sort of a confirmation right where it’s telling that the trend on Bitcoin is about to end when you get a lower low and a lower high against the existing up-train okay another example right so let’s if you recall right crude oil right in 2015 2014 a very strong decline right I think declined to a loss of about if you see over here 2030 dollars so again can we apply this concept right a break of structure so you can see that previously the decline right series of lower highs and lower lows right simple simple market structure but at this point this is where things got interesting okay this right now at this point you have a higher low and when the price breaks above here you happy higher high because the price broke this this prior resistance right now you have a higher high let me just highlight to you right a higher high and a higher low higher high this area over here a higher high and higher look okay so this again should give you a strong clue that hey you know this downtrend could possibly have come to an end right so you don’t hear me using words like guarantees confirm right bottom out or top out right there’s no such thing as guarantee in trading or in technical analysis or whatsoever if any one promise II promise you you know guarantee run far away okay so this is why I like to use words like probably likely possibly right there is always this element of non-guaranteed behind it so anyway this is another example of the break of structure and you can see that a price did eventually really up higher from here okay so the another technically I wanna share with you is what I call higher time frame structure right it’s important to pay attention right where you are in terms of the big picture so this is why you have to hear traders say hey you know you should pay attention to what the higher time frame is doing right that is so called the giving you the but ice view right of where you are in a big picture so this is why you know I want to share with you about the higher time frame structure so let’s look at the first example over here right you might wonder and look at this chatty hey Rana why did the price you know come up here and then decline right what what’s so magical about this this area okay price apparently breaks above this a swing high over here and it collapse lower as I respond a lot of traders who are unaware they buy the breakout only to get caught on the wrong side hmm why is that right again I mentioned something called higher time frame structure so let me point out to you if you look at this chat over here you can see that higher time frame this is the daily time frame what you’ve seen earlier is the four hour time frame you see that over here on this higher time frame this is where you have you know previous support that could act as resistance so the breakout that you’ve seen earlier is actually at this portion over here you’re buying to break up into this previous support that could act as resistance which is which is again right it’s a low probability breakup because you’re buying into a huge selling pressure right and it’s a pretty much no wonder why this market reversed from here so this is what I mean by higher time frame structure right you want to pay attention to where the price is coming into especially if it’s coming to any higher time frame structure like you know support resistance trendline channel etc another example right over here new zealand yen on this four hour time frame okay price come down lower bounce time point boom really hey what happened man what’s going on a clue right higher time frame structure and although I do agree that you have a series of higher lows and higher highs as the price break out of this resistance as well right I do agree right but another thing that I want to share with you to look out for is higher time frame structure so looking at the daily time frame you can see that over here I know there’s a quite a bit of lines over here but what I want you to pay attention to is this portion it came into a strong support on this daily time frame in fact I think it’s even a parent on a weekly time frame and if you draw a trend channel here’s this calm of this trend channel as well so again no surprise right at hey you know you can expect a bounce or even a reversal of this area on your chat alright so this is what I mean by higher time frame structure okay and the last tip that I want to share with you is pay attention to the 200 period moving average so for those of you who have been following me a while now you know that I I tend to say that you know if the price is above the 200 and me right try to stay long right and if the price is below the 200 ma right try to stay short and the reason is quite simple actually if you think about this right need 200 period moving average it summarizes the prices of the last 200 candles right so if the price right now is a birth the 200 ma is telling you that the price right has been trending higher so that’s why it’s above the 200 ma and if the price is below the 200 ma it’s telling you that the price right has been trending lower alright so this is a simple way to kind of you know tell you what’s the long-term trend right of the particular shot that you’re trading notice that I use the word long-term trend off the particular shot of your trading because it could be the 200 ma on the five minutes timeframe and it isn’t really a long-term trend because it’s a five minutes time for you likewise it can be a 200 ma on the daily time we’re in debt hey that’s a pretty long time frame so I would say it’s the long-term trend of the chart that you’re trading depending on what time frame you’re looking at but anyway right let’s have a look at the example right this is the 200 ma on the daily time frame so again how do we apply this uh this technique again you at this port at this point over here the price is above the 200 ma so I seen right have a long bias I didn’t say bye I said have a long bias this means that you want to look for long opportunities you look for opportunities to buy in this market condition so from the looks of it right I’ll say this is an area of support okay and every time you know if price comes with into an area of support it forms a price rejection there is a valid trading setup and on top of it right you know that you’re trading along together with the long term trend which is on the up-train right so this might have been potential setups right this one as well okay this one price just slice through it there wasn’t any price rejection or anything so you know there is for me there’s no reason to be long okay so now that the price has now you know traded below the 200 ma right now the price is below the 200 m e price is below it now hey I see it right to have a shot by it so now you can look for opportunities to go shot so just again simple market structure you can look for a previous support and resistance or I like over here right previous support that could against resistance over here okay similarly here previous support acting as resistance so now this is how you can actually use the 200ma to give you a biased know whether it should be long or short and then just reference right to a market structure like support resistance or maybe moving every try to kind of identify the area of value that you want to trade from okay so this is out 200 Amir I could give you alright alert to you that you know the trend might be about to reverse another example shall we write Aussie dollar against the Japanese yen so get this one again a price over here at this point right price is above T 200 ma right so again you should have a long bias right so now the question is do you have a long trading setup okay so in this case I to me there isn’t right because there is any price rejection right price just pretty much go through it at this point now the price is below 200 ma my bias is known from long to short so again ask myself at what level on the chat do I wanna trade so it’s the price you know hit lower for example no setup this over here might be a possible setup okay you can notice that there’s this a swing low price break below it comes up gives you a price rejection before continues to the world came back up into this resistance now hit lower came back up again for that time hit lower came back up hit lower on top of it this one over here you have the okay this one is a really significant right because number one we tested at 200 ma number two into this area of resistance okay and number three you have this falls break of this highs over your price I think did trigger above this heist okay and then collapse reverse lower alright so then again price retest a 200 ma come down lower did a pullback towards this previous swing load that could excess resistance and then continue lower so you can see that if you reference the two 200 ma for your buyers right you can see that chances are you’re usually trading you know on the right side of the trend of course there are times where you know this totally break down especially if the market goes into a long term a long-term retry let’s say a long term range like this 200 ma is pretty much like in the center right so yeah at this point in time right you might get a chop up a little bit but if you just use a little bit of common sense and see that the market is in a long-term ranger you still can you know adapt to it accordingly so anyway right this 200 ma it’s useful again to help you identify the trend reversal and to help you tree on the right side of the Train okay so good so moving on right let’s do a quick recap right now on this I like to do this to make sure the concepts right and techniques goes into your hip first thing we spoke about break off structure right I say that you know in an uptrend you have a series of higher highs and higher lows so if you get a series of we or if you get a lower high and lower low it’s a sign to you that hey you know the uptrend could potentially possibly slash could be reversing number two I spoke about referencing it to the higher time frame structure where are you in the big picture are you coming into a long term strong support resistance trendline channel etc that is something that you want to be aware of as well and a third thing we spoke about is how you can use the 200 ma right – number one identify trend reversal and you help you trade alongside the right side of the trend I mean that’s a mouthful right to identify trend reversal and to trade with the trend okay so with that said right I’ve come to the end of this video if you want to learn more about what I do right can go down to my website trading with Rainer calm because my name is Rainer trading rainy or calm all right you scroll down a little bit right so today we spoke about obviously largely about price action so each one more knowledge on it go down here and download this describe the price section the ultimate guide to price action trading click this blue button I’ll send it to your email for free and if you learn more about trending markets writing massive trends going download this ultimate trend following guide right again you can click this blue button and I’ll send it to your email for free alright so that’s it I’ve come towards the end of this video if you enjoyed it you like it smash right there like button subscribe to my youtube channel any questions leave it below and I’ll get back to you so with that’s it I wish you good luck and good trading and I’ll talk to you soon you


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