Price tests a peak or a trough twice, fails to break through, and reverses.
Single candles with long wicks. They show aggressive price rejection at extreme highs or lows. chapter 8. reversal trading strategies
Never jump in on the first counter-trend candle. Wait for a follow-through candle to prove the new trend is real. Price tests a peak or a trough twice,
If the price makes a new high, but the oscillator (like RSI or MACD) makes a lower high, upward momentum is dying. fails to break through
Reversals typically occur around major historical supply and demand zones. 📊 Top Reversal Trading Strategies 1. Classic Candlestick Patterns
Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastics. 4. Moving Average Crossovers