LEARN TO TRADE LIKE A MARKET MAKER KNOW WHEN THE TREND IS GOING TO END ~ forex easynews trader v1.02
Knowing when a trend is going to end can be a very powerful and profitable piece of knowledge. you probably notice how consistently Smart Money (banks) tend to cycle the market is pushes of three over the span of 3-4 days. Understand just this small piece of information can keep you from placing a trade when the market has a higher probability of reversing. But what else can we use to more effectively predict when the weekly trend is going to reverse. The strategy is what I call the Weekly Trend Exhaustion Reversal. Learning how to spot reversal is critical for many reasons. One key reason we all need to know how to spot reversals is to avoid fighting shifts in the trend that wipe out other traders. Second these reversals often get us in near the beginning of the three to four day trend thus allowing us to take high risk/reward trade setups.
CRITERIA FOR THE TREND EXHAUSTION REVERSAL SETUP
then what criteria do we generally look for before considering market reversal?
1.) Do we have 3 clear cycles?
2.) Are those cycles moving at least the Average Daily Range (ADR), and preferably 90 pips or more each?
3.) Have these 3 cycles occurred over the course of 3 or 4 days?
4.) Was the overall move (From the start of the first cycle to the end of the third) at least 150 pips?
Once this criteria has been satisfied the foundation for
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