Top or Bottom reversal?

[carnelian]

A major cause of several traders failing to succeed in forex market is the urge to pick top or bottom reversals. They keep on losing money while uselessly trying to pick them. Instead wait for a confirmation and then enter any reversal you want.

 

[EuroTrader]

A major cause of several traders failing to succeed in forex market is the urge to pick top or bottom reversals. They keep on losing money while uselessly trying to pick them. Instead wait for a confirmation and then enter any reversal you want.

Yes it is true that we have to at-least wait for the markets so that they can give us some trades which are profitable to us and using them we can make a good income

 

[downtrend]

In order to catch top or reversal bottom you have to keep a closer look at important resistance and support levels. When price reaches such a level its likely to take a reverse direction, so you can capitalize on that.

 

[dianajs]

It's best to draw one's trendlines - they're an excellent indication when we should look out for a possible reversal or a continuation of a trend for that matter, depending on what bars the pair forms around them.

 

[ForexVerified]

It's best to draw one's trendlines - they're an excellent indication when we should look out for a possible reversal or a continuation of a trend for that matter, depending on what bars the pair forms around them.

It's true; the price bounces out of these congestion points often. They offer great entry/exit points.

 

[dianajs]

It's true; the price bounces out of these congestion points often. They offer great entry/exit points.

That was my point as well, with the caveat that one has to be wary of false breakouts, which do occur from time to time.

 

[EURUSD]

It's true; the price bounces out of these congestion points often. They offer great entry/exit points.

It will good if already having good understanding with this pattern, and will making best opportunity to obtained profit in trading, but might not always market will having same pattern alwaus

 

[downtrend]

It will good if already having good understanding with this pattern, and will making best opportunity to obtained profit in trading, but might not always market will having same pattern alwaus

Yes pattern trading is also an effective way of picking up tops and bottoms but still forex is very unpredictable, what ever method you use, use proper money management.

 

[iMusingKiMi]

Try to spot Tweezer Top or Tweezer bottom. It usually give a highly reliable signs for reversal.

 

[dianajs]

Try to spot Tweezer Top or Tweezer bottom. It usually give a highly reliable signs for reversal.

One can look for those or for a regular double top or double bottom. The latter two are especially reliable if they're combined with a clear candlestick pattern that is also signal for a reversal, like a hammer candlestick, a hanging man or a shooting star candlestick. Generally it's a good idea to read up on different candlestick patterns, because there are many patterns other than the ones I listed, that can provide good, reliable signals for an impending reversal and they can be applied to pretty much all time frames.