Always In and Major Trend Reversal trading setups
BPA trading room Q&A: November 6, 2015
Question: Could you give your perspective on the day for Always In trading and Major Trend Reversals?
Video duration: 2min 33sec
Always In trading
From an Always In perspective today. Okay, maybe — I think it’s an okay swing short below B3. I think you sell either B4 or B5, and you get out above B8, and you get long above B12 or you wait for the B14, B15 close. I would get out below B16. If not below B16, then above B19. And I think you buy again above B24. And then you notice bad sell signals — B29 and B33 — so theoretically you could still stay long, stop below B24 or below B12 or below B8. To me, double top up here, trading range. If I bought above B24, I would get out below B24. And I’m not selling down here [B36-39], I’m buying again here [B39], and I probably would get out there [B56] or on the third bear bar [B59]. Or go short and then buy again above B63 or wait for three or four consecutive bull bars and then buy.
Major trend reversals
For major trend reversals today, you can argue bear breakout lower high major trend reversal so strongly up. I would rather be looking to buy bull major trend reversals than sell bear major trend reversals. So B12, probably a minor reversal but okay swing. I think B24 is a reasonable major trend reversal buy, and you either get out below either one of these bars [B30/B34]. Or you get out below B24. If you get out below B24, you have a second chance — a double bottom, higher low major trend reversal there [B37]. And that’s a buy, and get out either here [B57] or after two or three bear bars.
Minor trend reversals
And this [B63] — is this a major trend reversal? I think it’s more of a minor reversal. You got a bull trend lasting about 20 bars; not all that major a bull trend, bear breakout. You got a bear trend in the bull breakout, higher low — to me, I wouldn’t think of this as a major trend reversal. To me, the clear major trend reversals were this higher low [B24] and then again, that higher low [B39].
Look further to left for broad channels
You can argue that this [B56/57] is a lower high major trend reversal, that we have a bear trend and a lower high, but to me I would think of this more as a broad bear channel short than a major trend reversal. A major trend reversal is up here [previous day]. Maybe this double top, but at this point, I would be thinking of it more in terms of an ongoing bear trend and a lower high in a broad bear channel. So to me, the major trend reversals were here [B24] and here [B39].