When will the market reverse?
when in a downtrend - the stochastics and rsi is gonna bounce of the low looking macd several times before it reverses -
to see reversal, look for multiple time frame stochastics moving at the same time
which is a correction and will be followed by a continuation in the direction of the trend - see the weekly chart
with the weekly chart in mind, in a downtrend you should get at least 2 moves to trade on the hourly chart while it is under the 200 and 100 ma - this will include moves that have brought the macd up
- the moves may include bouncing on the overbought (upper) side of the window or a double top on the stochastics which then crosses the macd - even if it's at an angle - the stochastics will be under the macd all the way at the bottom looking like it still has room to move but you'll hesitate to enter because the stochastics will be all the way at the bottom already - don't worry - it will appear to reverse and will end up rolling back over - that's your entry - if you missed the entry in the overbought territory - you should see that the price lines up with the fibonacci retracement if you place it - also price mayu not always? reverse off the 100 but look for it to reverse at that point - so be patient for it to go all the way there and then you can take the trade
if the 3 left charts have the macd on the same side as the trend but turned the opposite direction - wait a little longer to enter rather than just waiting for example for the 30 minute chart to give a signal to enter the daily downtrend - let it form a couple or a few tops first.
this means the 1h and 4h must be pointed opposite the higher time frame trend and therefore wait a little longer to give them more time to be ready to reverse - maybe the 30 minute needs time to bounce around and appear to slope higher before dropping and pulling the macd back down with it - maybe the macd wants to make a low, higher low while the price makes a low, lower low.
trade what I see not what I think or feel
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