This post title might look weird to some traders, But Is there anything that can helps us found reversals in Strong bullish Momentum Pairs. Answer is most of the time It does not work and Its not easy as We always being taught that trend is you friend and We should often look for pullback entries in such strong trends.
But what has gone us should come down in any way whether it is long term correction or complete Reversal
Let's take an example
Eur/cad reversal after First Attempt Failed
Chart mentioned here is Eur/cad chart and pair was in strong trend untill first attempt after low fades out and It completely trap traders with a range Breakout with Strong Bullish, at the top of the range. But we does need a clearer view that whether it is reversal, because most of the time price does take time to continue, But here in this chart things are totally different, as price does reverse slowly after this first attempt to continue and the second mentioned candle which test the top of the range and reverse totally. And On daily time frames it does take huge stops to catch a reversal.
But If you count the low of first attempt to reverse the price where low is 1.4257 which is exactly 800 pips difference from the first attempt whose high is about 1.5257. What more interesting is the fact that the second strong attempt from low failed at 1.4257 and that is where current daily supply is lying. Rest of the things have been thoroughly explained on the chart and I would really be more than happy to clear each and every point that is necessary to spot a reversal as I already have.
