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Showing posts with the label how to identify when the market is reversing

When will the market reverse?

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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 ...