CandlesticksWhat are your favorite indicators for reversal trading?

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The best indicators for trend reversal trading: A definitive list of the strongest indicators for counter-trend trading.


The list below are of the most powerful reversal signal indicators on our site: I've now edited this post for 2024 with a list and links above to the best reversal indicators for live trading.
A list of our most powerful reversal indicators 🔃
Guide to the "All Averages" Filters (ADXvma, Laguerre etc.)
Fibonacci numbers for indicator settings + How to draw Fibonacci Extensions
An easy trick for drawing Support & Resistance




Re: What are your favorite indicators for reversal trading?

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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.

A list of our most powerful reversal indicators 🔃
Guide to the "All Averages" Filters (ADXvma, Laguerre etc.)
Fibonacci numbers for indicator settings + How to draw Fibonacci Extensions
An easy trick for drawing Support & Resistance

Re: What are your favorite indicators for reversal trading?

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Jimmy wrote:Good thread. For counter-trend/reversal trading I trade 15 minute charts using top down analysis (starting from the monthly chart drawing major support and resistance lines and working down to the 15M chart). I'll enter a counter-trend position once price is a few pips away from the:4H, Daily, Weekly and Monthly support and resistance lines.4H, Daily, Weekly and Monthly trend lines.I also like to take counter-trend signals from two technical indicators:
Chaos Visual Averages on 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 
Hi Jimmy
Interesting,and thanks for sharing your pretty logic, can you explain more with illustration pictures
Indicator is just a tool.

Use it only if it can benefit you. Leave it if you don't know how to use it optimally.


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