How to predict a reversal trend Part I

In this video I will explain a very powerful strategy which I use in my trading to predict a reversal trend; This strategy relies on Bollinger Bands(20) and RSI(14). So let's begin, I will open the 4 hours time frame and the EUR/USD chart, I will add the bollinger band and the RSI indicators, and now how to predict that a trend will reverse, I will drop a line and join the lower lows of the bollinger band, then I will drop a line from the lower lows of the RSI which corresponds to the lower lows of the bollinger band. Now if I see a divergence, so I will know that a reversal trend will appear very soon, but when this reversal will appear? to know where to enter into a long trade I will drop a breakLine from the highest lows of the bollinger band and wait the price to touch the lower band of the bollinger bands, in that case when the price breaks the breakLine I will enter long trade, be carefull don't enter directly when the price breaks the breakLine, the price must touches the lower band first in order to confirm the trade.

Category:

Education

Tags:

• free
• forex
• trading
• signal
• strategy
• fx
• alert
• currency
• foreign
• exchange
• technical
• analysis
• bollinger
• band
• RSI
• reversal
• forecast
• prediction
• trend
• Rpchost

[sfawega555]

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[james89731]

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[redbeardo0o]

unclear



[DayTradersWin]

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[freeSCALPINGindicato]

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[xshanghu]

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[Ex925]

4H

[holdtheonionsplease]

Its a good strategy, but you don't need the bollinger or the RSI, just draw the trend lines on the price, wait for it to break and then trade the bounce after the pullback to the trendline. You can set a stop about half atr on the other side of the line. The price will often push past the line on the retest, but then should fail and go back your way. If it closes across and continues past the high of the bar that broke the line, then dump it immediately. You can safely target 1.5 atr.