Price Bar Reversals (9 of 9) - The Pivot Point Reversal

[damnutube2hell]

which chart doeS this work best in? 15 minutes? an hour? or daily?

[YourTradingCoach]

@damnutube2hell

Hi damnutube2hell,

Price action patterns are relevant on all timeframes and all markets, provided sufficient liquidity (ie. smooth price flow).

Cheers,

YTC

[beatthedealer]

It could be tested. Does it at least move one bar in your favor a majority of the time? See a carpenter could check the function of his hammer.

Cheers, mate. Check the pah-ern.

[YourTradingCoach]

@beatthedealer

Patterns are useless without context. The context (higher timeframe structure and current price action environment) will tell you the suitability of the pattern and the potential for the reversal to be either short-term influence or longer-term influence.

To continue your hammer analogy, a hammer is useful for tasks it's designed for, but useless when a saw is required. The context (building plans) will tell you when to use a hammer and when to avoid it.

YourTradingCoach

[beatthedealer]

Asking how well it's done is not only a correct question it's the best question. Good for you fonzi. Ahhhhhhhh!

[beatthedealer]

The word "reversal" is to ambiguous for a serious discussion.

[YourTradingCoach]

@beatthedealer

Ambiguity exists in all market situations. The goal in learning to trade is not to seek certainty (it doesn't exist); rather it's to learn to manage risk and opportunity in an ambiguous environment.

YourTradingCoach

[beatthedealer]

What's to stop the "reversal " from being a "long term" shift?

The word reversal means what the speaker wants it to mean, hence the problem. Vendors seem unfamiliar with the term ambiguous or they're actually masters of it.

[123trendtrading]

How would you clasify that pattern as a reversal ,it might just be a short term correction.

[YourTradingCoach]

@123trendtrading

The word "reversal" in candlestick & price bar reversal patterns indicates a short-term shift (reversal) in sentiment. Remember though, this game is not one of prediction. It's about managing risk and opportunity.

Place the pattern in context with higher timeframe price action to improve odds. Then actively manage the opportunity. If the edge is gone, get out.

(answer continued in next response box due to character limit)...

[YourTradingCoach]

(response ctd...)

... If the short term change of sentiment does not lead to a long term reversal, a professional trader will identify this through lack of momentum, scratching the trade and ideally reversing.

Remember as well, these reversal patterns are not just useful for identifying long-term market reversals. A reversal pattern can signal an end to a counter-trend move, and a resumption of the original trend (ie. continuation, as you suggested).

Cheers,

YourTradingCoach

[fonzi0was0cool]

hi

can this be used on stocks and shares ? how well have you done with it ?

[YourTradingCoach]

@fonzi0was0cool

Hi fonzi,

Yes... any market. Remember though it's just a reversal pattern - not a complete strategy. So asking how well someone has done with it is the wrong question. It's just a tool. It's like asking a builder whether or not a hammer works - how well have they done with it.

Cheers,

YourTradingCoach

[kinda007a]

Very good information... this has helped me a lot... thanx... hope to learn more stuff from u!!!!!!!!!!

[desiredgifts]

great vid opened my eyes to a new setup easy and straight forward...thanks for the insight!!!!!!

[YourTradingCoach]

@desiredgifts

Thanks for your comments. I'm glad you enjoyed the Pivot Point Reversal video.

All the best with your trading,

Lance.

[fonzi0was0cool]

@YourTradingCoach

what time frame do you use for these charts ? that works best.

[YourTradingCoach]

@fonzi0was0cool

Timeframes vary on all videos. Candlestick analysis works on all markets and all timeframes, provided sufficient liquidity. Avoid thinly traded markets which gap all over the place.

Regards,

Lance

YourTradingCoach

[chatowngeek]

Lance, you really got me into OHLC. I trade mainly using candlesticks. but now I will use OHLC chart to confirm my candlestick trade. That way I will have more odds on my favor. As always your video presentations are remarkable.

[YourTradingCoach]

@chatowngeek

Thanks for your comments on my price bar reversal vids. I'm glad you enjoyed them.

Cheers,

Lance

[1stavros1]

great stuff enjoyed your videos

[YourTradingCoach]

Thanks again 1stavros1.

Happy trading,

Lance.