This sort of reversal trading is really simple actually. When I trade the m15 chart I also look for signals in m5 and m1. So in m5 I have a double top being formed and in m1 it has broken the opposite sloping trend line. You can't see it all here but if you look in your charts you will see what I mean. Hope this helps.
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mira laws
4/23/2013 01:35:56 am
That almost looks like it shouldn't work but I see those kind of trades all the time. What is the best way of doing them?
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Dragan Lukic
4/23/2013 01:53:13 am
See above comments Mira.
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Henry
4/23/2013 01:45:47 am
Great trade. Thanks for sharing.
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Derek
4/23/2013 07:33:30 am
This definitely looks like a kid of reversal I would like to play myself. I looked on your website though and this strategy is not in your videos. Am I missing something?
I'm afraid you're right. The video to trade this strategy is not on the website. We simply haven't had time to put one up yet and we have more planned in before we post this one up. Markets are taking up all of our time but rest assured it will be up there soon.
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Jason Munns
4/23/2013 07:07:37 pm
This seems like a real risky way to trade. Are you not trading against the trend here?
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Dragan Lukic
4/23/2013 07:22:54 pm
You are trading against the trend if you look at from a pure 15m point of view. However, if you look at where the price touches the bollinger band and how extreme the close is outside it, couple it with a double top in m5 and a break of a trendline in m1 and bam!...you got yourself a reversal.
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Kate
4/23/2013 07:24:08 pm
This is exactly how I trade Bollinger Bands. However, this needs to be traded in 3D mode where you look into 3 different time frames for confirmation. If you trade a daily chart then you probably need to only reference the 1h but if you are trading the 15 min chart as above you defo need to reference 5 and 1m charts for confirmation. Great trade.
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Mark Forex Swain
5/12/2013 05:09:58 am
This is a great trade.
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Dragan Lukic
Professional Forex trader at Capex Forex Trading. Visit our Forex training website to start learning to trade Forex.