Thursday, June 9, 2011

Reversal bars in a strong trend

On days with extremely strong trends, reversal bars look great (b17,b33) but usually give no more than a scalp profit. With trend entries on the other hand look poor (b2, b12, b24, b38, b50) but tend to give reasonable profit.

When the with-trend entries suddenly look great (b62) and the reversal signal looks poor(b67) I am usually suspicious of a reversal. This is a great place to exit and depending on the price action, reverse your positions.


  1. hello cadaver, greetings from Spain, thanks for your explanations which order you use to enter and exit the position ..

    and another question, that you usually have slippage ..

    thank you very much

  2. I rarely have slippage. Using stop limit orders rather than stop market orders (if your broker provides them) is a great way to reduce the risk of slippage.

    During sudden moves triggered by news, there can be slippage, often of 4ticks or more but usually 1 or 2t.