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Tackle Today: The art of the reversal

July 21, 2020

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Chart reversals in 5 steps


Studying technical analysis, we can see patterns develop over time.  In an uptrend, we can identify higher highs and higher lows in the pivot points.  But, when those relationships change, and the momentum of the trend slows down, the reversal of trend might be starting.

It is especially important to be able to identify how trends change.  When a trend moves from an uptrend, into a consolidation, and then into a downtrend you have actions you can take.  As a trader there are signals that give you the opportunity to adjust your trades, make new trades, add protective put insurance and other techniques that will help you protect your risk or enter a new trade with probability on your side.

In episode 382 of the Trading Justice Podcast, Matt and Tim sat down to discuss the Art of the Reversal and how to identify a chart reversing trend in 5 steps.  Those steps include:

Step 1: Slowing Momentum

Step 2: Double Top

Step 3: Double Bottom

Step 4: Support Breaking

Step 5: The Kiss of Death

Below, you can find a video tutorial on how to read chart reversals from coach Matt, a chart that has all 5 reversal points identified for you and a PDF that puts all of it together.

Spend some time studying how price action and trend as identified through pivot point relationships can tell you a lot more about a stock chart than you might have thought. 



Chart of the Day

The 5 steps of a Reversal Pattern

In a reversal, a trend will move into slowing momentum, then a double top, a double bottom, eventually it must break support and then the last step is the kiss of death.

Video of the Day

Art of Reversals

Coach Matt analyzes the art of a market reversal in this video tutorial. 

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show 8:30 PM EST

This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

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