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To watch the video, please click on following link
BEST Point of Reversal Trading Setups is based on the backtesting. I receive a lot of queries from the investors and traders i.e. how to find the point of reversal. In this video, i have shared 6 BEST Point of Reversal Trading Setups.
The first reversal trading strategy is based on support and resistance. The support and resistance levels act as a strong and reliable point of reversals. It is the best strategy to buy near support and sell near support. The second point of reversal technique to check the market mood index. The market normally reverses from extreme fear and extreme greed zones.
The bullish and bearish divergence is also a very reliable technique to find the point of reversal for a stock or an index. However, the bullish divergence or bearish divergence should be formed within 30-40 trading sessions for a reliable investment or trade.
The Fibonacci retracement act as a very reliable reversal point based on the backtesting of the stock or index. For each stock/index, the retracement levels are different. Therefore, there is NO SINGLE thumb rule.
The trend line also provides a very good signal for point of reversal. The trend line which first acts as resistance can act as support after the breakout.
Lastly, the exponential moving average of 200 or 100 acts as a point of reversal or change in trend.
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