Looking for good price reversal signal

[Tradingkid]

I have used some of the existing signals - all seem to blow with the wind - no steadfast signal of an immenent price reversal - have tried a few trend indicators, but all are lagging and kind of bad calls - get the feeling if I use these I am gambling - somehow somewhere there has to be a good indicator for the high or low having been reached (5 or 15 M chart preferably) which is more than an educated guess -
Is there?
Any one?
Anything?
Thank you

(reasonably new at forex)

 

[bbmac]

I have used some of the existing signals - all seem to blow with the wind - no steadfast signal of an immenent price reversal - have tried a few trend indicators, but all are lagging and kind of bad calls - get the feeling if I use these I am gambling - somehow somewhere there has to be a good indicator for the high or low having been reached (5 or 15 M chart preferably) which is more than an educated guess -
Is there?
Any one?
Anything?
Thank you

(reasonably new at forex)

Have you considered using divergence and extreme levels at oscillator readings as part of a trigger at areas that you pre-identify that may offer support or resistance...this can be done on any time frames.

This morning in gbpusd was a good example, where various patterns of scillator extremes and regular bullish divergence set-up at today's current lows...1min and 5min were oscillator extremes whereas 15min 30min and 1hr were regular bullish divergence.

Oscillator divergence can turn a lagging momentum indicator into a potentiually leading one and as you will see below I have identified various repeating patterns of osc div/extremes with bol, bands that measure volatility....identify such patterns your self and remember that extreme levels/div is most valid at potential supp/res and that acvtual price action should be your trigger for entry to market. The more t/f's above your t/f you used as the trigger for entry with such osc div/extremes patterns, the more your potential target should be, bearing in mind that if counter-trend trading you should make the working assumption that it is a pullback until price action on succeeding t/f's tells you otherwise. Once in a trade Price action trumps all else.

G/L

1min

5min

15min

30min

1hr

 

[bbmac]

more recent eg

Look more recently in gbpusd, we had a prev 1hr swing lo zone=prev support=potential resistance )sbr) with 76.4% fib of the 5206-4977 drop annd also Mni 93rd party info provider) were touting offers 5150/55...also price had exceeded it's 20day average pip range...so right there we had a potential resistance confluence...so on 1min and 5min we had regular bearish divergence pattern and a 5min pinbar as a trigger to sell against the prevailing intraday sentiment...

Remember confluence is king

5min

1hr

 

[bbmac]

Good advice re post above....Just be aware re divergence that you can also get hidden (sometimes called reverse or trend) divergence too to help you get back with a trend after a pullback...see 5min below, price pulls back to a prev minor 5min swing hi=prev res=potential support (rbs) and 5min sets-up with hidden divergence and 2 x doji candles combo as the trigger....and we get a nice 'with trend' run up to a margianl new trend Hi.

Enough said on divergence Lol - G/L in your search

 

[rathcoole_exile]

there has to be a good indicator for the high or low having been reached

do you not see the fallacy of you question ?
if such a device existed, we'd all be using it and we'd all be multi-millionaires overnight

let me spell it out for you: THERE IS NO HOLY GRAIL !!!!!!!!!!!!!



try this, at least for a different approach:
http://www.tradethemarkets.com/public/Currency_Trading_at_the_Markets_Open.cfm






r_e

 

[Dentalfloss]

agreed....this can be a great thread..by compzring each others thoughts and methods,we can arrive at a method that has a very high strike rate

 

[bbmac]

do you not see the fallacy of you question ?
if such a device existed, we'd all be using it and we'd all be multi-millionaires overnight

let me spell it out for you: THERE IS NO HOLY GRAIL !!!!!!!!!!!!!

It's a good point, but that doesn't mean to say that there are not technical tools at our disposal from which we can develop a trading edge. A trading edge can therefore be the ' Holy Grail. '

 

[SuperDriveGuy]

Good advice re post above....Just be aware re divergence that you can also get hidden (sometimes called reverse or trend) divergence too to help you get back with a trend after a pullback...see 5min below, price pulls back to a prev minor 5min swing hi=prev res=potential support (rbs) and 5min sets-up with hidden divergence and 2 x doji candles combo as the trigger....and we get a nice 'with trend' run up to a margianl new trend Hi.

Enough said on divergence Lol - G/L in your search

Hi bbmac,
Great stuff on divergence. You have given me some good insights. I have been using Stoch divergence as my ONLY entry signal. Works great on tick chart for smaller TF trading, except in trends.

So far the way I have handled countertrend trades, is with entry only on multiple signals in a short span of time(I use tick charts)

Thanks,

SDG

 

[Tradingkid]

It's a good point, but that doesn't mean to say that there are not technical tools at our disposal from which we can develop a trading edge. A trading edge can therefore be the ' Holy Grail. '

As a legendary member I had anticipated that you may undestand that as a recent starter I have but limited knowledge of good or bad indicators - I WAS NOT LOOKING FOR A HOLY GRAIL - OR SARCASM - I was seeking to improve what I have which is of a choice limited by my lack of experience - so my search is for improvement - you have made your point with the very complicated charts and al sorts of explanations for which I thank you, and it makes the right impression for sure - you are very good- but at this time fib and the likes of elliot waves are still beyond me - I am still at the BB and Stochs stage.
Thank you for taking the time to answer.

 

[bbmac]

As a legendary member I had anticipated that you may undestand that as a recent starter I have but limited knowledge of good or bad indicators - I WAS NOT LOOKING FOR A HOLY GRAIL - OR SARCASM - I was seeking to improve what I have which is of a choice limited by my lack of experience - so my search is for improvement - you have made your point with the very complicated charts and al sorts of explanations for which I thank you, and it makes the right impression for sure - you are very good- but at this time fib and the likes of elliot waves are still beyond me - I am still at the BB and Stochs stage.
Thank you for taking the time to answer.

It was not me that made the original reference to a 'holy grail' Ibut I did respond to that post by suggesting that a trading edge can actually be the holy grail - ie a positive post....Thats the trouble with trying to help-the reward is so often a kick in the teeth Lol !!

G/L

 

[rathcoole_exile]

TK, did you check the video link in my previous post ?
did you read what I wrote in PM ?

i believe you should ditch the Stochs etc asap .....

best of luck

 

[pboyles]

PIN bars as described on forexfactory by james16 are a starting point, especially at a support or resistance level and better still with divergence as well. See attached for a perfect example.

 

[Dentalfloss]

i think,first of all,you have to decide what method to show a reversal
it could be
1.candle/bar chart pattern
2.oscillator pattern
3.price action pattern.ie p/f,renko,3 line break
4.other technical indectaors.ie ma"s
5.trendline break
i think we should classify each one according to what it shows
if there are any i have left out..then let me know

 

[Tradingkid]

It was not me that made the original reference to a 'holy grail' Ibut I did respond to that post by suggesting that a trading edge can actually be the holy grail - ie a positive post....Thats the trouble with trying to help-the reward is so often a kick in the teeth Lol !!

G/L

I regret the error and thank you for your input and understanding. It wasnot my intention to give any one a kick in the teeeth - I came looking for assitance.
I hope we can communicate some more from which I may learn.
Thank you

 

[forexkunta]

For those of you who trade the MACD divergence, here is a custom indicator that is really nice, gives you more info than the standard mt4 MACD.
Regards,
Kent