200 EMA

Forex Reversal Strategy Part 2

I hope that you guys find the Part 1 of this reversal strategy useful for you. In this post, I am going to show you how to trade the forex reversal strategy using forex indicators instead of candlestick patterns. There are 2 indicators that you can used to trade the forex reversal strategy. 200 EMA […]

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    I hope that you guys find the Part 1 of this reversal strategy useful for you. In this post, I am going to show you how to trade the forex reversal strategy using forex indicators instead of candlestick patterns.

    There are 2 indicators that you can used to trade the forex reversal strategy.

    200 EMA

    The 200 EMA is in fact a very strong level of support or resistance. Therefore you can see that the price usually respects this indicator.

    200 EMA

    Therefore when you see that the price manages to break below the 200 EMA, it is usually a sign that the market is going to reverse. However I am not suggesting you to enter a trade immediately after the market breaks the 200 EMA.

    What you can do is to wait for the price to retest the 200 EMA that it has broken and then enter a trade in the direction of the first breakout.

    Fibonacci Indicator

    The Fibonacci levels are levels of strong support and resistance. Therefore you can tell a reversal of trend based on the market behavior on these Fibonacci levels.

    However I am unable to elaborate more on this indicator as it will be unfair for those traders who has purchased my Forex Mastery Course. In the course, there is one 2 modules that is dedicated to Fibonacci indicator and this alone tells you the power of this indicator in trading.

    I hope that you guys like the Forex Reversal Strategy posts that I have written for you and make sure that you test out this strategy on a demo account first before you trade live with it.

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