VIDEO | Reversal Strategy
The trend is your friend, except when its changing direction without you having time to spot the change. That’s why it’s important you catch the swing before or as it’s happening. A Reversal strategy is exactly for this purpose. A trader needs to be able to identify the patterns his charts are displaying to know that a swing is about to happen.
In this video we’ll identify four simple to catch patters that can give you clues as to when the market is about to change direction. They are excellent for binary options so that you can know where the asset will be just before option expiry. You’ll learn to spot the hammer, inverted hammer, shooting star and the hanging man patterns. The negative of trading like this is a lot of waiting around for patterns to appear but on the plus side you’ll be protecting your capital while the trend trader gets caught out.