≈ 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.
DOWNLOAD THE ART OF THE REVERSAL PDF HERE:
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.
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