As traders, especially those who focus on Price Action, you might have wondered this before:
"How can I effectively identify a trend reversal?"
Or, "Where is the optimal entry point when a market reversal occurs?"
We have the answer to your concerns: The Deliberate AnaCute Trading package.
So, what do we need to find a highly reliable trend reversal?
- A breakout - where the price breaks the trend/trendline.
- The relative strength between Bulls/Bears.
Considering a downtrend scenario, where we look for a U-turn:
First, to identify a trend/trendline, we use the
KingRenko$ bar to reduce noise, providing a clearer view to determine the prevailing trend structure.
Then through the swings of Zigzag Swing Pro, we can see the top-bottom structure in a trend and draw trendlines for better visualization when a breakout happens.
(Zigzag Swing Pro also provides the accumulated Buy/Sell volume of a Bullish/Bearish phase.)
Next, how can we anticipate if the market will reverse?
The secret lies in the correlation strength between Bulls/Bears, as the dominating side will influence the market price movement when the breakout happens.
In this downtrend scenario, we must ensure that the Bears weaken while the Bulls strengthen when the breakout occurs. This careful observation will give us a dependable signal of a bullish trend reversal, indicating that the market sentiment is shifting towards a potential upward trend.
But how to identify if the Bulls are winning? (And the Bears are weakening?)
W-Wave Volume Pro is your go-to solution:
By analyzing the Buy/Sell volume accumulation during a Bullish/Bearish phase, you can visually gauge the strength of Bulls and Bears.
We look for specific patterns in volume clusters that reveal the winning side:
- If the peaks of successive buy (or sell) volume clusters decrease in height, the strength of Bulls (or Bears) in the market weakens.
- Conversely, if the peaks of successive buy (or sell) volume clusters are increasing in height, the strength of Bulls (or Bears) in the market strengthens.
Here’s an illustration of the Downtrend scenario where we expect a trend reversal:
The illustration shows that:
- The breakout position coincides with the gradual decrease in Sell volume.
- A gradual increase in Buy Volume happens in the same period.
These 2 conditions indicate a highly reliable swing point from Downtrend to Uptrend.
Finally, as the swing point is identified - the final step is to find a suitable Entry point.
In a price range that interrupts the prevailing trend or trendline, it’s time to consider the cumulative Buy/Sell volumes.
In this downtrend example, after the breakout, the subsequent buy volume cluster stands 50% lower in height when compared to the prior sell cluster. This suggests that the buyers have failed to regain dominance.
Therefore, the sell position at this sell signal generated by W-Wave Volume Pro is where we should enter a trade.
In conclusion, when a breakout appears, we must be patient while gathering more information to confirm the trend direction and entry point for a high-reward reversal trade.
Deliberate AnaCute Trading offers data for analyzing and strengthening the reliability of a reversal, mirroring the hunting characteristics of the Anaconda: being patient, precise calculations, avoiding impulsive actions, and firmly seizing the target.
If you are a cautious trader who values confirmation and always aims for better precision, this package is tailor-made for you.
- 28 Aug 2023 - The package was released.
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