In this market we’re either looking at bearish setups or reversals.
Reversals are very simple to identify, find and trade. However, in this market you must use a trading plan that will protect your profits quickly because the market can easily snap back the other way.
In my filters today I can see a larger than average number of railroad track lows, and long-ranged doji bar lows. This will have me looking carefully at the selections that are identified by my filters.
So, for a low reversal setup I like to see a well-formed reversal pattern, and in an ideal world some indication that the OVI is pointing the other way. That will be rare, so I start my filters just looking for great reversal setups.
In today’s market video I show how I use my Reversals TradeFinder in OVI Traders Club.
I’ll do more of this in the next few days, and we’ll also get into the trading plan which is always so crucial too.