Good Day Traders, in this article I want to show you three ways for taking trades after a reversal as I do in many cases. These three ways are higher/high – lower/low pattern, engulfing pattern and Double Red/Green strategy.

You know that many of my trades are mainly reversals but if I want to take a trade after a reversal I use these methods. First of all, let’s talk about engulfing. It’s a popular and strong candlestick pattern and I am sure that you have noticed it many times in your charts.Take a look. In this screenshot we have two engulfing patterns, one bullish and another one bearish. In the first blue box we have the bullish one.Our reversal was made in the red horizontal line and this line is our support.Then it appears a small red candle and after that a big green candle which engulfs the red.This is a buy signal.The next candle is green. Pseudo random binary signal wiki. In the second blue box we have a bearish signal.The big red candle engulf s the green and the next candle is negative. Higher/high – Lower/Low Let’s see the second screensot about higher/high – lower/low pattern.It’s a little bit different from the first one.

We have again two signals here.One bullish and another one bearish. Look at the first blue box.The red horizontal line is our resistance.The green candle makes a new higher high, hit in the resistance and makes a reversal. The red candle open below the green and close below the green,too.It’s a sell signal and the next candle is red.

Indicator forex candlestick analysis. ytimg.com/vi/YgTKcxn-HZY/hqdefault.jpg' alt='Video how to make money on the binary options pdf' title='Video how to make money on the binary options pdf'> In the second blue box we have the opposite.The green candle opens above the red and close above the red.It’s a buy signal and the next candle is green. In this method I am always trying to avoid candles with long wicks. Double Red/Green Strategy Another similar way to trade after a reversal is the double red/green strategy.

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There are many traders who using it especially in short- term trading. In the first blue box notice that after the reversal in the red horizontal line we have two red candles.The second one close below the first.It’s a sell signal.The third candle in the row is red,too. In the second blue box we have a positive doji star after the last red candle, maybe you can’t see it in the screenshot, and the next one is a green candle which close above the doji. This is a buy signal and the thrid candle is green. Confirmation If you read my previous articles you will see that I never take a trade without confirmation. You should always need some confluence to take a solid trade.In these cases the first confirmation for me is RSI.