Recent

3/recentposts

Popular Posts

Theme images by Storman. Powered by Blogger.

Sample Text

Pages

Unordered List

Recent in Sports

4/Sports/custom-widget

Home Ads

Home Ads

Tags

#1 Live Trading on Glenmark Pharmaceuticals Ltd #1 Live Trading on Godrej Industries Limited #3 Live Trading Session 1-2-3 Strategy 1-2-3-4 Reversal Trading Strategy 10 CHART PATTERNS FOR PRICE ACTION TRADING 10 Habits of successful traders 10 Performing Candlesticks 10 PRICE ACTION BAR PATTERNS YOU MUST KNOW 10 PRICE ACTION CANDLESTICK PATTERNS YOU MUST KNOW 10 Things You Can Learn From The World’s Best Traders 10 TYPES OF PRICE CHARTS FOR TRADING 123 forex trading strategy 123 Trading Strategy 200 SMA 3 Bar Net Line Strategy 6 Best Price Action Trading Strategies 7 RSI TRADING STRATEGIES 9 Advanced & Profitable Trading Strategy 9 Funny Facial Expressions AB = CD Price Action Strategy Abb India Limited Aditya Birla Nuvo Limited Aditya Birla Nuvo Ltd ADVANCED REVERSAL STRATEGY Alice Blue Opening Link Alphabets Amaraja Battries Ambuja Cement Anupam Rasayan India Limited IPO Asian Paint Ltd Aurobindo Pharma Limited Bajaj-Auto Bearish Crossover Bearish Engulfing Bearish Engulfing Candle Bearish Reversal (Red-Red) BEML Ltd Best Stock Market Strategy Bharat Finance Inclusion Blood Rain Pattern bollinger band Bollinger Band Price goes below Mid line Strategy Bollinger Band Price gone above mid line Bollinger Band Strategy Breakout Stock Trading Strategy Bullish Crossover Bullish Engulfing Bullish Gartley Pattern Strategy Bullish Three Bar Reversal Butterfly Spread Cadila Healthcare Limited Calendar Spread Camarilla Equition canara Bank Candlestick Charts Candlestick Patterns Candlestick Patterns Strategy Cesc Limited Chart Patterns Cipla Closing Above Previous High for 3 Days Closing Below Previous Low For 3 Days coal India Cup & Handle Pattern Daily Life of a Trader dark cloud cover Day Trading Breakout Day Trading Setups Day Trading Setups – 6 Classic Formations Day Trading Strategy DBLHC Descending Triangle Divergence Price Action Strategy DIVI'S Laboratories Ltd Doji Candlestick Patterns Dojis Double EMA Dr Reddy Dr. Reddy's Laboratories Limited Early Morning Range Breakouts – 4 Trading Strategies EMA Equity Market EXHAUSTION BAR Falling Wedges (26th Dec 2017) Federal Bank fibonacci Fibonacci Retracement Fibonacci Retrenchment Strategy Fibonacci swing trading strategy Flag Pattern Strategy Flash Pattern Forex Trading Strategies Fyers Account Gandhi Jayanti Gap Up Gartley Pattern Glenmark Pharmaceuticals Limited godrej Godrej Consumer Products Limited Godrej India Gppl Happy Birthday Happy Chhath Puja Happy Diwali Happy Diwali (2017) Happy Diwali (2018) Happy Dussehra Happy Ganesh Chaturthi Happy Holi Happy Independence Day 2017 Happy Janmashtami Happy Krishna Janmashtami 2017 Happy Muharram 2017 Happy Navratri To All Happy Teacher Day Harmonic Pattern HCL Technology HDFC HDFC Bank Head & Shoulders breakout Head & Shoulders Pattern (6th Oct 2017) Head and Shoulders Pattern Higher high of 3 days Hikkake Pattern Hindustan Petrolium Hindustan Unilever Hindustan Unilever Limited HOW TO DRAW TRENDLINES How To Trade Supply And Demand IndusInd Bank Indusind Bank Ltd Infosys INSIDE BAR Inside Bar - Outside Bar Inside Bar Trading Strategy by Stock Alphabets Inside Day Bar Intraday Intraday strategy Intraday strategy with Camarilla Equition intraday SureShot Intraday SureShot Official Post Intraday Trading Strategy Intraday/Day Trading Strategy inverted Head & Shoulders Irb Infrastructure Developers Limited Iron Condor Iron Fly Island Reversal Pattern Trading Strategy Jindal Steel & Power Limited Jk Lakshmi Cement Limited Jubilant Food Jubilant Foodworks Limited Kajaria Ceramics KEY REVERSAL BAR Kingfa Science and Technolgy (India) Ltd Kotak Mahindra Bank Limited Larson & Tarbo LIC LIC Housing Finance Limited Live Trading Lupin Limited M & M Finance Mahanagar gas Making Higher High for 3 Days Making Lower Lows for 3 Days Master Candle Master Candle Strategy Master Plus Candlesticks Meditation Mind Tree Mindtree Mobile App & Website for share market Momentum Divergence Strategy Morning and Evening Stars Moving Average Strategy My 10 price action secrets Naked Options NBCC (India) Limited New Mobile Application Annoucement NHPC Nifty Trend (12th August 2017) Nifty Trend line (10th August 2017) NMDC NMDC Cup & Handle Pattern NR7 NTPC Nureca Limited IPO Option Strangle (Long Strangle) Options Strategy Newsletter OUTSIDE BAR Outside Bar-Inside Bar Combo Pattern Pattern Strategy PATTERNS Pidilite India PINOCCHIO BAR (PIN BAR) PINOCCHIO BAR TRADE SETUP (PIN BAR) Piramal Enterprises Limited planting trees PNB POPGUN BAR PATTERN Price action Price Action Candlestick Patterns Price Action Continuation Patterns Price Action PATTERN # 6: Pin Bars PRICE ACTION PATTERN #1: DBLHC Price Action PATTERN #4: BEOVB Price Action PATTERN #5: BUOVB Price Action Patterns Price Action Pivot Point Strategy Price Action Sandwich Trading Setup Price Action Strategy Price Action Strategy Guide Price Action Strategy lover Price Action Trading Class Price Action Trading Course Price action trading strategy Price came back channel from bottom Price came back channel from Top Price gone below mid line Price-action-trading-strategies #Chapter-01 Price-action-trading-strategies-#Chapter-02 price-action-trading-strategies-#Chapter-03 Price-action-trading-strategies-#chapter-04 Profitable Level Profitable Level (13th Dec 2017) Profitable Level (14th Dec 2017) Profitable Level (15th Dec 2017) Profitable Level (18th Dec 2017) Profitable Level (18th Sept 2017) Profitable Pattern Profitable Trader Profitable Traders Do Nothing 99% Of the Time PVR RailTel IPO Ratio Spread Raymond Limited Reliance Capital Reliance Infra Repco Home Finance REVERSAL BAR PATTERN Risk/Reward Ross Hook Pattern Trading Strategy RSI RSI Divergence Strategy SBI Shooting Six Candle Concepts SMA Sodha Spring at Support & Resistance State Bank of India Stock Alphabets Stock Market Stock Market & Finance Movies Stock Market Strategy StockAlphabets Stop Loss Order Straddle Strangle Strategy EMA Strategy Resource Strip/ Strap sun Pharma Sun Pharmaceuticals Industries Limited Supertrend Supertrend Strategy support & Resistance Support & Resistance (25th Sept 2017) Support & Resistance (26th Dec 2017) Support & Resistance Strategy (6th Dec 2017) Support and Resistance Swerve pattern Swing Trading Strategies Swing Trading Strategy Tata Chemical Tata Global Beverages Tata Motors TCS The Best Stocks to Buy Now or Whenever The India Cements Limited The Outside Bar Trading Strategy Three Bar Reversal Three Candle Formation THREE-BAR PULLBACK Titan Company Limited Top Indian Companies with Monopoly Top 10 Continuation Candlesticks TOP 10 PRICE ACTION TRADING BOOKS Top 10 Reversal Candlesticks Top Monopoly stocks in India Torrent Torrent Pharmaceuticals Traders Trick Entry Trading System trading breakout Trading Key Reversal Bar Trading Psychology Trading Strategy Trading Strategy For Posstional & Intraday Trading System Trading the trend Trend line (25th Sept 2017) Trend line Strategy Trend line Strategy (14th Dec 2017) Trend Trading Analysis Prediction Trend-line Strategy (30th Nov 2017) Trendline Trendline (19th Sept 2017) Trendline (6th Nov 2017) Trendline Line Strategy Trendline strategy Trendline Strategy (19th Dec 2017) Trendline Strategy (2nd Dec 2017) Trendline Strategy (6th Dec 2017) Triagle Pattern TV18 Broadcast Limited TWO-BAR REVERSAL Types of Trader TYPICAL PRICE Typical Price Action Strategy ubl UBL Breakout Ujjivan Ujjivan Financial Services United Breweries Limited United Phosphorus Ltd Vertical Spread Volume Candlesticks Volume Trading Intraday Strategy W Pattern Wedge Pattern Strategy Wedges Price Action Strategy(16th Dec 2017) wedges Strategy (19th Dec 2017) Wipro Limited Wockhardt Limited Wolf Wave Strategy World’s Best Traders www.StockAlphabets.com Yes Bank Zee Entertainment Enterprises Limited Zydus Wellness

Travel

3/Travel/custom-widget

Comments

3/recentcomments

Ads

An´┐Żncio

Latest in Sports

Sports

Random Posts

4/randomposts

Facebook

[Latest News][6]

#1 Live Trading on Glenmark Pharmaceuticals Ltd
#1 Live Trading on Godrej Industries Limited
#3 Live Trading Session
1-2-3 Strategy
1-2-3-4 Reversal Trading Strategy
10 CHART PATTERNS FOR PRICE ACTION TRADING
10 Habits of successful traders
10 Performing Candlesticks
10 PRICE ACTION BAR PATTERNS YOU MUST KNOW
10 PRICE ACTION CANDLESTICK PATTERNS YOU MUST KNOW
10 Things You Can Learn From The World’s Best Traders
10 TYPES OF PRICE CHARTS FOR TRADING
123 forex trading strategy
123 Trading Strategy
200 SMA
3 Bar Net Line Strategy
6 Best Price Action Trading Strategies
7 RSI TRADING STRATEGIES
9 Advanced & Profitable Trading Strategy
9 Funny Facial Expressions
AB = CD Price Action Strategy
Abb India Limited
Aditya Birla Nuvo Limited
Aditya Birla Nuvo Ltd
ADVANCED REVERSAL STRATEGY
Alice Blue Opening Link
Alphabets
Amaraja Battries
Ambuja Cement
Anupam Rasayan India Limited IPO
Asian Paint Ltd
Aurobindo Pharma Limited
Bajaj-Auto
Bearish Crossover
Bearish Engulfing
Bearish Engulfing Candle
Bearish Reversal (Red-Red)
BEML Ltd
Best Stock Market Strategy
Bharat Finance Inclusion
Blood Rain Pattern
bollinger band
Bollinger Band Price goes below Mid line Strategy
Bollinger Band Price gone above mid line
Bollinger Band Strategy
Breakout Stock Trading Strategy
Bullish Crossover
Bullish Engulfing
Bullish Gartley Pattern Strategy
Bullish Three Bar Reversal
Butterfly Spread
Cadila Healthcare Limited
Calendar Spread
Camarilla Equition
canara Bank
Candlestick Charts
Candlestick Patterns
Candlestick Patterns Strategy
Cesc Limited
Chart Patterns
Cipla
Closing Above Previous High for 3 Days
Closing Below Previous Low For 3 Days
coal India
Cup & Handle Pattern
Daily Life of a Trader
dark cloud cover
Day Trading Breakout
Day Trading Setups
Day Trading Setups – 6 Classic Formations
Day Trading Strategy
DBLHC
Descending Triangle
Divergence Price Action Strategy
DIVI'S Laboratories Ltd
Doji Candlestick Patterns
Dojis
Double EMA
Dr Reddy
Dr. Reddy's Laboratories Limited
Early Morning Range Breakouts – 4 Trading Strategies
EMA
Equity Market
EXHAUSTION BAR
Falling Wedges (26th Dec 2017)
Federal Bank
fibonacci
Fibonacci Retracement
Fibonacci Retrenchment Strategy
Fibonacci swing trading strategy
Flag Pattern Strategy
Flash Pattern
Forex Trading Strategies
Fyers Account
Gandhi Jayanti
Gap Up
Gartley Pattern
Glenmark Pharmaceuticals Limited
godrej
Godrej Consumer Products Limited
Godrej India
Gppl
Happy Birthday
Happy Chhath Puja
Happy Diwali
Happy Diwali (2017)
Happy Diwali (2018)
Happy Dussehra
Happy Ganesh Chaturthi
Happy Holi
Happy Independence Day 2017
Happy Janmashtami
Happy Krishna Janmashtami 2017
Happy Muharram 2017
Happy Navratri To All
Happy Teacher Day
Harmonic Pattern
HCL Technology
HDFC
HDFC Bank
Head & Shoulders breakout
Head & Shoulders Pattern (6th Oct 2017)
Head and Shoulders Pattern
Higher high of 3 days
Hikkake Pattern
Hindustan Petrolium
Hindustan Unilever
Hindustan Unilever Limited
HOW TO DRAW TRENDLINES
How To Trade Supply And Demand
IndusInd Bank
Indusind Bank Ltd
Infosys
INSIDE BAR
Inside Bar - Outside Bar
Inside Bar Trading Strategy by Stock Alphabets
Inside Day Bar
Intraday
Intraday strategy
Intraday strategy with Camarilla Equition
intraday SureShot
Intraday SureShot Official Post
Intraday Trading Strategy
Intraday/Day Trading Strategy
inverted Head & Shoulders
Irb Infrastructure Developers Limited
Iron Condor
Iron Fly
Island Reversal Pattern Trading Strategy
Jindal Steel & Power Limited
Jk Lakshmi Cement Limited
Jubilant Food
Jubilant Foodworks Limited
Kajaria Ceramics
KEY REVERSAL BAR
Kingfa Science and Technolgy (India) Ltd
Kotak Mahindra Bank Limited
Larson & Tarbo
LIC
LIC Housing Finance Limited
Live Trading
Lupin Limited
M & M Finance
Mahanagar gas
Making Higher High for 3 Days
Making Lower Lows for 3 Days
Master Candle
Master Candle Strategy
Master Plus Candlesticks
Meditation
Mind Tree
Mindtree
Mobile App & Website for share market
Momentum Divergence Strategy
Morning and Evening Stars
Moving Average Strategy
My 10 price action secrets
Naked Options
NBCC (India) Limited
New Mobile Application Annoucement
NHPC
Nifty Trend (12th August 2017)
Nifty Trend line (10th August 2017)
NMDC
NMDC Cup & Handle Pattern
NR7
NTPC
Nureca Limited IPO
Option Strangle (Long Strangle)
Options Strategy Newsletter
OUTSIDE BAR
Outside Bar-Inside Bar Combo Pattern
Pattern Strategy
PATTERNS
Pidilite India
PINOCCHIO BAR (PIN BAR)
PINOCCHIO BAR TRADE SETUP (PIN BAR)
Piramal Enterprises Limited
planting trees
PNB
POPGUN BAR PATTERN
Price action
Price Action Candlestick Patterns
Price Action Continuation Patterns
Price Action PATTERN # 6: Pin Bars
PRICE ACTION PATTERN #1: DBLHC
Price Action PATTERN #4: BEOVB
Price Action PATTERN #5: BUOVB
Price Action Patterns
Price Action Pivot Point Strategy
Price Action Sandwich Trading Setup
Price Action Strategy
Price Action Strategy Guide
Price Action Strategy lover
Price Action Trading Class
Price Action Trading Course
Price action trading strategy
Price came back channel from bottom
Price came back channel from Top
Price gone below mid line
Price-action-trading-strategies #Chapter-01
Price-action-trading-strategies-#Chapter-02
price-action-trading-strategies-#Chapter-03
Price-action-trading-strategies-#chapter-04
Profitable Level
Profitable Level (13th Dec 2017)
Profitable Level (14th Dec 2017)
Profitable Level (15th Dec 2017)
Profitable Level (18th Dec 2017)
Profitable Level (18th Sept 2017)
Profitable Pattern
Profitable Trader
Profitable Traders Do Nothing 99% Of the Time
PVR
RailTel IPO
Ratio Spread
Raymond Limited
Reliance Capital
Reliance Infra
Repco Home Finance
REVERSAL BAR PATTERN
Risk/Reward
Ross Hook Pattern Trading Strategy
RSI
RSI Divergence Strategy
SBI
Shooting
Six Candle Concepts
SMA
Sodha
Spring at Support & Resistance
State Bank of India
Stock Alphabets
Stock Market
Stock Market & Finance Movies
Stock Market Strategy
StockAlphabets
Stop Loss Order
Straddle
Strangle
Strategy EMA
Strategy Resource
Strip/ Strap
sun Pharma
Sun Pharmaceuticals Industries Limited
Supertrend
Supertrend Strategy
support & Resistance
Support & Resistance (25th Sept 2017)
Support & Resistance (26th Dec 2017)
Support & Resistance Strategy (6th Dec 2017)
Support and Resistance
Swerve pattern
Swing Trading Strategies
Swing Trading Strategy
Tata Chemical
Tata Global Beverages
Tata Motors
TCS
The Best Stocks to Buy Now or Whenever
The India Cements Limited
The Outside Bar Trading Strategy
Three Bar Reversal
Three Candle Formation
THREE-BAR PULLBACK
Titan Company Limited
Top Indian Companies with Monopoly
Top 10 Continuation Candlesticks
TOP 10 PRICE ACTION TRADING BOOKS
Top 10 Reversal Candlesticks
Top Monopoly stocks in India
Torrent
Torrent Pharmaceuticals
Traders Trick Entry Trading System
trading breakout
Trading Key Reversal Bar
Trading Psychology
Trading Strategy
Trading Strategy For Posstional & Intraday
Trading System
Trading the trend
Trend line (25th Sept 2017)
Trend line Strategy
Trend line Strategy (14th Dec 2017)
Trend Trading Analysis Prediction
Trend-line Strategy (30th Nov 2017)
Trendline
Trendline (19th Sept 2017)
Trendline (6th Nov 2017)
Trendline Line Strategy
Trendline strategy
Trendline Strategy (19th Dec 2017)
Trendline Strategy (2nd Dec 2017)
Trendline Strategy (6th Dec 2017)
Triagle Pattern
TV18 Broadcast Limited
TWO-BAR REVERSAL
Types of Trader
TYPICAL PRICE
Typical Price Action Strategy
ubl
UBL Breakout
Ujjivan
Ujjivan Financial Services
United Breweries Limited
United Phosphorus Ltd
Vertical Spread
Volume Candlesticks
Volume Trading Intraday Strategy
W Pattern
Wedge Pattern Strategy
Wedges Price Action Strategy(16th Dec 2017)
wedges Strategy (19th Dec 2017)
Wipro Limited
Wockhardt Limited
Wolf Wave Strategy
World’s Best Traders
www.StockAlphabets.com
Yes Bank
Zee Entertainment Enterprises Limited
Zydus Wellness

Tuesday, 14 April 2020

Price Action Strategy lover

- 1 comment

Double Low Higher Close (DBLHC)

Double Low Higher Close is another classic bullish reversal pattern loved by Price Action traders.

What are Double Low Higher Close (DBLHC) Patterns?


The DBLHC pattern consists of two candles.
The Lows of both candles need to be very close (within few pips).
The Close of the 2nd bar need to be Higher than the previous bar's high.

Why are Double Low Higher Close (DBLHC) Patterns formed?

Price tests support level twice but is rejected and cannot close below.
DBLHC pattern represents a sudden shift in the order flow, which can often be a telling sign of a short or long term uptrend.

How to find Double Low Higher Close (DBLHC) Patterns?

Price Action Tracker has you covered, the candlestick scanner will scan, in real time, all your favorite markets and time-frames and alert you as soon as a Double Low Higher Close (DBLHC) Patterns is detected.

How to trade Double Low Higher Close (DBLHC) patterns?

Double Low Higher Close can be traded as a reversal candlestick pattern when found at the bottom of a short term trend and validated by support levels.

Where to Place your Entry, Stop Loss and Take Profit?

There are three ways to enter a Key Engulfing reversal trade. They all have Pros and cons and really depend on the trader as well as the market conditions.

Aggressive entry (Candle close Entry)
DBLHC-close-entry
Simply place a market entry.

Standard entry (Break of candle Entry)
DBLHC-break-entry
Enter on a break of candle by placing a stop order just beyond the candle (1 or 2 pips).

Retracement Entry
DBLHC-retrace-Entry
Wait for the market to retrace to some extent before entering a trade.
Using retracement entry to get better Risk: Reward scenario can be very profitable but you might miss on a lot of trade if the market doesnt retrace.
Most traders always use the 50% retracement entry, but before deciding of a % figure you should always ask yourself what kind of price action environment are you in? Are we in a trend or a range? What are previous high and previous low? And then decide where the retracement entry would make the more sense (could be 33%, 60% or even 75%).
Going for a 50% retrace entry each time will get you a retail traders entry, not a professional one.

Stop loss
DBLHC-stop
Stop loss is a level in the market that would need to be breached for you to be prove wrong and get you out of an investment.
A good rule of thumb is to place your stop loss few pips beyond the tail of the bar.

When to move Stop Loss

Once a trade has triggered and price has moved in your favor a bit, you can move your stop loss to break even.
I personally move my stop loss to break even once a candle has closed above the 1:1 target.

Take Profit

This is left to the trader’s discretion, however a good profit target is to use the next key level of resistance for a long trade, or the next key level of support for a short trade.
Traders should always aim for a return on investment higher than 2:1, if your Profit/Risk ratio is lower than 2:1 you may want to skip that trade or amend your Entry point in order to get a much better Profit/Risk ratio.
Our Position Size Calculator will allow you to decide if a trade is worth to take, when to enter it and what should be the right position sizing.


Summary

DBLHC patterns are great to trade, but like all price action setups and patterns, they perform better when used in conjunction with a trend or support levels, this is why using our Price action indicator and its price action filters is so important.

Friday, 10 April 2020

Moving Average Strategy

- 2 comments


Moving Average Strategy

Charting Tools: 10,15&30-Min. Intraday charts

Technical Tools: 20& 200 period ‘simple’ moving averages.

Buy & Sell Setup: The Stock Alphabets Buy & Sell
Setup.

Long positions are favored when prices are Above their 200-MA and 20-MA on a 30-Min. chart Entry points are found on 5,10,15-Min. charts.




Short positions are favored when prices are below their 200-MA and 20-MA on a 30-Min. chart Entry points are found on 5,10,15-Min. charts.




Monday, 6 April 2020

Trading Key Reversal Bar

- 1 comment

Trading Key Reversal Bars and How To Squeeze The Best From Them

Key reversal bars can be interpreted in many ways. Every trader has their own ideas about their significance and how they should be used. Here I’ll discuss some of the best ways to trade them, and the various patterns that you’ll see time and time again on your trading charts.
The problem with key reversal bars is they can often look very similar to an outside day, a pin candle or hammer candle. If you’re a candle watcher you’ll be familiar with those.
Identifying the significant patterns takes more than just eyeballing the formation of the bar, the ones you need to watch are the reversal bars that form at significant highs, lows, support, resistance or after a chart pattern has played out, or is about to play out.
For instance, this is a standard definition of how a key reversal bar looks, the high is above previous day high then it squeezes below the recent lows, and closes up.

If you swap this out to a candle chart display, you can see it looks much like a pin or hammer candle.

Key reversals can also look like an outside day. Here is an example as a bar.

And here is the same bar displayed as a candle, a true outside day.

So how can we define which ones will be worthy of a trade, and which ones not?
Follow on and I will show you some ideas that will help, and ways to detect them.

The Continuation of Trend Key Reversal Bar

You like trading trends? After all the trend is your friend, as they say.
Key reversal bars give you a great way to enter the trend with an obvious place for a stop, and unlimited profits if the trend is strong. That’s great risk versus reward.
In our example earlier I showed you a key reversal that was also like an outside day. This happened whilst there was a clear trend formed, and the price had stalled to consolidate for a while.
Then they key reversal bar appeared. It went up to go higher, which was rejected, then went lower, and wasn’t rejected. To enter you sell the break of the key reversal bar low the next day.
Your stop would be above the previous day high. And you can pull that down to evens when price begins to accelerate, cutting out the risk.
See this example chart.

Reversals at Support or Resistance (Swing Points)

Picking any high or low just won’t cut the mustard. You want to see these reversals either squeeze a new recent high or low that is rejected, or retest the support / resistance and fail.
Here’s some easy to understand examples, and ideas for trading them.
In this example you see on the left of the chart what is commonly referred to as a swing high. These are great patterns to watch for, as key reversal bars will often squeeze toward a swing high (or low) and get rejected as no volume is found.
You can then trade the break of the key reversal bar, moving away from the resistance or support zone. For support, the exact same method applies in reverse.

Lower Risk Trading Reversals

The above method can sometimes make the initial risk quite large. As the outside day bar (which is key) can be long.
If you identify a key reversal, one less risky way to jump on the move, and have a tighter stop is to wait for a hesitation in the trend right after the reversal.
To find those short hesitations you only need to identify an inside day or bar.
And inside day is the exact opposite to the outside day. It means the current day high and low has been within the high and low of the previous day. This signifies that the market is not sure what to do next. But you know, as well as I do, that trends will often continue.
With that in mind, you will wait for an inside day AFTER a key reversal bar, then sell the break to the direction of the trend.
Here is an example of the same key reversal bar as above, but then we wait until a small consolidation forms, look for the break of the inside day.

Conclusion.
These patterns are easy to spot once you begin to look for them. They offer plain as day places to put a stop loss, and allow you to lower your risk fast if they run in your direction right away.