It seems all traders seek to answer the same question: “When is this market likely to reverse?”
Newer traders tend to love “reversal” style strategies, wanting to enter as close as possible to a trend reversal in order to have the tightest stop and biggest target possible.
While no strategy can call a top or bottom all the time, one of the best ones I’ve found is to look for multi-swing divergences followed by a trendline break as a high probability, low-risk trigger for entry into a potential major shift in a market trend.
Read More: http://www.dailymarkets.com/stock/2011/03/31/lesson-in-divergences-plus-trendline-breaks-in-dollar-march-31/
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