How to Trade Reversal Signals
Entry Order
Once a Reversal Signal shows up on the chart place a stop entry buy order one tick above the bar or pattern (for bull). The closest logical stop goes below the bar or pattern – a bar/pattern stop.
E-mini ES 2019/10/16
Bear gap, mid range, Opening Range, 2fBO, FF, fL2, fBO, mDT, LH MTR, DT, DP, DB, mDB
the LOD was at a MM of yesterday’s PM trading range
the HOD was at the shallowest bear trend line from yesterday
The Buy Sell Pressure indicator had three nice signals. Two were showing buying pressure before a bull signal bar and one selling pressure on the mDT, which was the HOD.
E-mini S&P 500 Future 5 min chart (trend lines, arrows and boxed text drawn by hand)
daily chart
Always In Long (AIL) since 10/10
Bull Inside Bar
E-mini ES 2019/10/15
Bull gap, above HOY, T1B, SC, 1P, BX, H2, DB, BP, L5
bull trend day, a CH often becomes a leg in a TR
after the L5 we took out the start of the bull CH
The Reversal Signal Bars indicator gave a 2BR reversal signal pattern at the HOD. The 2nd trend channel line overshoot (TCL OS) was a nice strengthener.
E-mini S&P 500 Future 5 min chart (trend lines, arrows and boxed text drawn by hand)
daily chart
Always In Long (AIL) since 10/10
Buyers above yesterday’s failed bear Entry Bar
third push from the Reversal Bar (R) a couple of days ago
E-mini ES 2019/10/14
Continuation, fBO, L2, DB, SHS
small TR day
E-mini S&P 500 Future 5 min chart (trend lines, arrows and boxed text drawn by hand)
daily chart
Always In Long (AIL) since 10/10
Buyers below yesterday’s bull body, failed bear Entry Bar
Breakout test of the 10/07 swing high
E-mini ES 2019/10/11
Bull gap. above HOY, T1B, mDB, 1P, fEB, 1CHBO, 1tF BT, DB, DP
The Buy Sell Pressure indicator had two nice signals, that were showing buying pressure before a bull signal bar.
E-mini S&P 500 Future 5 min chart (trend lines, arrows and boxed text drawn by hand)
daily chart
Always In Long (AIL) since 10/10
Double top with 10/01, L2 Signal Bar
E-mini ES 2019/10/10
Continuation, T1B, BO, FF, TRI, fH2, mDT, fH3, XT, BT, mDB
The Buy Sell Pressure indicator had three buying pressure signals during the opening drive and the following pullback.
Also it would have kept you out of that short 10 bars before the close, showing buying pressure before a bear signal bar.
E-mini S&P 500 Future 5 min chart (trend lines, arrows and boxed text drawn by hand)
daily chart
Always In Long (AIL) since today
2nd push up for bulls, but stalling at the August TR high and EMA