How to Trade a Trend Reversal (with Bottoms Tops Signal)

How to Trade a Trend Reversal (with Bottoms Tops Signal)

How to Trade a Trend Reversal (with Bottoms Tops Signal) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Catching a Trend Reversal is a guarantee of a huge profit because the Market will make a major movement in the new direction.

But it’s not easy, right?

But what if, with the right Trading Indicators and the right Trend Reversal Strategy, it comes easy?

In fact, by re-watching the following live trade, you have the opportunity to learn How to easily Identify and Trade a Trend Reversal.

Our Trend Reversal indicators clearly show on the TradingView chart that we have a big trade opportunity to the upside.

We begin with the Bottoms Tops Signal, which is the single Best Trend Reversal Indicator.

And then we combined it with the RSI Exhaustion, so that understanding How to identify a Trend Reversal becomes very simple.

In fact, these TradingView indicators clearly show that the Market is forming Bottoms and the downward movement is not sustainable.

Without using such indicators, it would be almost impossible to identify this Trading opportunity.

Trade setup – 6 May 2020

How you can trade these bottoms Setup 1

The pair is in a downtrend but the combination of our trading indicators clearly shows a buy setup.

In particular, without the Bottoms Tops Signal and the RSI Exhaustion it would be technically impossible to spot this trading opportunity.

The buy setup is confirmed because:

    1. There’s a divergence between the price, which goes down, and the RSI Exhaustion, which goes up
    2. The RSI Exhaustion is bearish exhausted, meaning that the price doesn’t have too much room to move any lower
    3. We have a confirmed bottom

We set the Stop-Loss to be a bit below the most recent lowest price, and the Take-Profit to be at a level where we identify some structure.

Trade update – 6 May 2020

How you can trade these bottoms Setup 2

The current Price Action doesn’t seem to be a problem because it looks like a retest.

In particular, if we extend the RSI Exhaustion trend line, we can see that it has fallen about there, which means that it’s a retest.

Of course, should the RSI Exhaustion fall further, then it might become a problem.

Trade update – 7 May 2020

How you can trade these bottoms Setup 3

As anticipated, the price made a retest, actually two, but the RSI Exhaustion never fell below its trendline.

Now the price is rising significantly.

Trade closed – 7 May 2020

How you can trade these bottoms Setup 4

Target reached without any major issue.

The Bottoms Tops Signal and the RSI Exhaustion have been key indicators in this trade.

We can say that we used a very profitable Trend Reversal trading strategy because we’ve earned an almost 4x profit with these two TradingView indicators.

Moreover, the Technical Analysis and the information given by these Trend Reversal indicators during the trade, suggested that we shouldn’t close the Trade even if the Price Action was moving against us.

Thanks to all this, we were able to stay true to our profitable Trading Strategy.

As you might guess, we like catching and trading major Trend Reversal opportunities.

And you?

Do you like trading Trend Reversals or do you prefer Trend Continuations and Breakout trading?

We’d like to hear from you so feel free to add your comment on the YouTube video above.