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Re: What are your favorite indicators for reversal trading?

Jimmy, Tue Apr 09, 2024 4:11 pm

For intraday (lower time frame) counter-trend/reversal trading I will trade 15 minute charts during the London and New York sessions using top down analysis, starting from the monthly chart drawing major support and resistance lines on the Monthly, Weekly and Daily charts.

Then I'll enter a counter-trend position once price is a few pips away from either the:
  • Daily, Weekly or Monthly horizontal support and resistance lines.
  • Daily, Weekly or Monthly Trend lines.
I also like to take counter-trend signals from two technical indicators:
  • Chaos Visual Averages on the "extreme" signals and close to major support/resistance/trend lines.
  • Bollinger Bands when price pierces or touches the outer bands on standard deviation 3.
This method has been working for me for 2 years with significant increase in portfolio size as seen in my live myfxbook link in signature.

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