How To Master Trading Reversals On The 5 Min (All You Need To Know)

Yes, yes. Today, I'm going to show you how to master trading reversals. These reversal strategies are responsible for profits like these. So, I'm going to show you guys everything. Let's go. So, in this video, we going to talk about the five different types of reversals. best reversals to take as a beginner. We going to talk about when not to trade when trading reversals. And we also going to talk about how to enter when trading reversals. So, let's go. Now, let's go over the five different reversals and I'm going to show you guys on the chart. So, everything is going to look much clearer. So, the first reversal is strong buying or strong selling, which is pretty much supply and demand. The second reversal is head and shoulders. The third reversal is a double top or a triple top. The fourth reversal is a trend line break. And the fifth reversal is a reversal trading with the trend. So, let me go to the chart and show you guys some examples. All right. So, here is a good example of a strong selling when the market is pretty much, you know, going up. So, right here, you see the market's going up right here. And all of a sudden, we have this strong selling right here, okay? That's just one example. I can show you multiple examples, but this is one example of the market just out of the blue sold off like crazy, okay? So, this is strong selling, which we would call supply, right? So, right here is a area where if the market comes back to this area, it's a strong possibility that sellers, okay, might revisit that area. So, notice how the market came to this area and guess what? It sold off. So, right here, you see that the market sold off, right? So, this is enough profits to basically make our money because we don't need it to reverse all the way down to here, right? We don't We not looking for that. We just need maybe a quick two to one, two times your money, and that's it, right? So, that's a good example of a strong selling. And I'm quite sure I can get a gap. And let me give you an example of a strong buying scenario. Okay. So, here's a strong buying scenario right here where we have buying right here, okay? So, from right here all the way to here, strong amount of buying, okay? So, the market is looking like, right? It's going down. And then all of a sudden, boom, it reverse from this strong buying area right here, which we would call demand, okay? So, this is a good example of a strong selling and a strong buying area where the market is basically coming to these areas and reversing, right? So, let's go to the next reversal, which is the head and shoulders. All right. Here's So, here is a good example of a head and shoulders. So, pretty much the market is going up. And we want to somehow figure out, okay, is this a reversal? Well, you could look and see that once the market makes a peak and we have another peak to the left, okay? So, this would be the head, left shoulder. If it comes anywhere around this area, it's a strong possibility, right? This market is going to reverse, right? If we see reactions, that's the key part of this whole scenario, okay? Reactions. So, right here, we have the market selling off like crazy, coming back to the left shoulder, comes back to this, uh, you know, resistance right here. And it hits it once, it hits it twice. So, let's talk about entries real quick. So, a one way or a good way to get in, um, would be, you know, a double reaction. So, we notice we have one reaction right here and another reaction right here, okay? And then all of a sudden, we have this red candle right here. So, to me, that is a good signal to get in. So, that is a great way to get in when it comes to, um, just any level, um, you know, when it comes to just trading the market. So, we have that. And we have the head and shoulders. To me, this is a great way to get in. Now, you can, um, look for more confirmation. Trading a head and shoulders will be wait for it to break, right? The lower part of the head and shoulders, which is this support right here. And then just wait for it to break and then hopefully it will pull back. Sometimes it it won't pull back, but, you know, it will pull back to this area right here when it breaks, right? And then you can get a trade to the downside, okay? So, that is another way to get in when it comes to the head and shoulders. Now, let's go to the next reversal. Now, before I even get into the next reversal, I want to show you guys another head and shoulders because every head and shoulders or every pattern in general is, you know, it's not created equal. So, this head and shoulders, if you look at it, right? Usually, you know, a normal head and shoulders in a textbook will look like something like this where you have the head, right? Or you have the left shoulder right here, you have the head. And it looks like this, right? A lot of times, it's not like this, right? Sometimes, the left shoulder could be far away, okay? So, it could be something like this where you have the left shoulder, right? And then you got the head right here, right? And then you might have that right shoulder right here, right? So, keep that in mind where, you know, you might Sometimes, every head and shoulders is not going to be, you know, created equal. So, right here, we had a head and shoulders I

would The reason why I'm going to show you this head and shoulders is because I like this because notice how we have a lot of resistance right here. Boom, boom, boom, boom. And then it comes up, create that head, comes back, and then this right here is strong, strong resistance, okay? I wish I get you know, I wish I would see this every single day. This is like, you know, money right here, but unfortunately, this doesn't happen every single day. But, if I see something like this, it's like, "Whoa, you know, a lot of resistance right here. " Something like this, you know, I'm very, very interested in, you know, playing this, okay? So, this is another reversal. I just want to make sure you understand that there's different types of, you know, head and shoulders. So, let's go to the next reversal. Now, the next reversal is a double top, triple top, right? Sometimes, you will see two tops and the market reverse or sometimes, you will see, you know, triple tops like here, one, two, three, actually four. So, we got four tops right here, okay? So, how do you want to you really want to approach this? There's two ways you can approach this. You can say, "You know what? Um, if it comes anywhere around here, I'm going to basically look to take a trade based on that, okay? " So, you can wait for it to come back to this resistance. And then if you see any type of selling, um, it could be, you know, we have a nice wick right here. So, a pin bar, it could be strong selling, it could be a double reaction. To me, any type of selling, especially around this type of, um, double top, triple top, most likely is a good entry to get in, okay? And then, um, you can get in like that, okay? Or you can say, "You know what? Let me look for, you know, a little bit more confirmation. " And you wait for it to maybe break down and test the resistance, okay? Uh, to the downside, which you can do that, too. But, this way right here is a good way to get in because you can definitely get a little bit more profits when you're trading this way, okay? So, let me show you guys the next reversal. Now, the next reversal is a trend line break reversal, okay? reversal is basically waiting for the market to break the trend line. And you're looking for it to basically continue to make lower lows, okay? Or if it's going up, higher highs, right? So, right here, here's a good example of the market breaking this trend line. And it's not just breaking it just a little bit, okay? We are creating lower lows. So, if it just break a trend line just a little bit and continue to go back up, you don't want that. You want it to break it and then continue to make lower lows, okay? So, right here, we have a break. Boom, it didn't make another lower low. So, over here, we have resistance right here, okay? And we do have some sample supply right here going on. So, to me, okay? I will look at this uh resistance right here. And anywhere around here, I will look to sell. So, you can get in double reaction, one, two, or you can get in when you see strong selling at that level or strong buying at that level. And that confirmation to get in. And then you look for a profits, most likely two times your money or more, right? So, again, looking for a trend line break, you just don't want it to break just a little bit. You want it to break and then continue to make higher highs or lower lows. And then, uh, you take that, you know, pull back to that level for that continuation, right? So, um, let's go to the next one. And I said five reversals. I made a mistake. It's actually six. The next one is a range reversal. I forgot all about that. Trading range. So, let's go. Now, this type of reversal is a range reversal. And this one is like a wide range, right? And they don't really happen that much, all right? I wish. Like, if I had to pick which environment I would trade every single day, it would be this because it's so easy, you know, only thing you doing is buying the, you know, buying the bottoms and selling the tops, right? So, unfortunately, the market doesn't act like this every single day, um, or for, you know, for the most part. So, you're not going to get a easy type of market, you know, um, condition like this every single day. Um, honestly, it don't even come every single week. Uh, sometimes once or twice a month, you know, sometimes you will get something like this, this clean, you know, this like every time it hits the top, boom, it sells off. bottom, it sells off. But, anyway, so, you basically want to mark down the top, mark down the bottom. And you want to just look for a reaction. So, to me, if it breaks this, right? And then I start to see buying going on, right? You can get in, okay? Honestly, these type of ranges, you can get in right away. Sometimes, you don't even have to look for a double test. If you see a lot of buying, you just get in right away, okay? You could look for a double test, but you don't have to, okay? And then when it came to the top, I would look for this uh, first. But, notice

I would look for this first. But, notice how it blew past this. It didn't know no reaction. But, the next one was a reaction. And we do have a double reaction. We have one, two. So, double reaction right at that level. You can, you know, have your sell order right here, and you can enter right here. All right? Look for profits. And these type of range, you can, you know, go all the way to the bottom of the range, you know. And it would definitely give you, you know, crazy RR. But, again, these really don't happen every single day or even every single week. Um it comes once in a blue. But, this is a different another different type of reversal that you can use when trading the market. I just want to show you guys the different type of reversals because a lot of people don't really talk about, you know, the different type of environments that, you know, we day traders, uh you know, have to trade every single, you know, week or month. Uh a lot of people would just talk about maybe one thing like the trend or, you know, a couple of things, but they don't really go deep and show you the different type of ways or different type of conditions when it comes to trading the market. So, that's why I decided to make this video just to show you guys the different types of reversals. So, um let's go to the last one, okay, which is trading with the trend. And honestly, that is the best, in my opinion, one of the best reversals for beginners, okay? So, we we talked about it. What was the type or the best type of reversals for beginners? That would be trading with the trend. So, let's go and show you that. All right, guys. So, you see the market is basically trending to downside, and we have basically, you know, resistance right with the trend. So, when you see this, to me, this is like, you know, one of the best ways to trade the market when it comes to reversal. So, the market is downtrending right here. Uh you know, you will wait for the market to come to some type of resistance, right? Um and then, you're looking to trade. So, to me, one of the major resistance would be right here. Okay? And this would be a nice trade to downside. And then, all of a sudden, right, we came back down, and then we created another low, came back, boom. So, another resistance would be right here. Notice how it came to this resistance, it slammed right at down. Now, again, where would be another resistance, okay? Consider some type of head and shoulders right here. So, to me, any pullback around here, right, anywhere around here would be some type of, uh you know, level to get in. Boom, right, with the trend. So, right here, um I would look if I was trading this pullback, I would look maybe to right here. It never went there. Um if it never went there, you know, you could definitely do all that maybe a trendline break on that uh to get in right here. Okay? If you want to do that. But, overall, um trading with the trend, it is you know, by far probably the best way to trade reversals um because it it's literally going with the flow. Let me show you guys some bullish examples real quick. So, right here, we have the market trending up, and I would just look for, you know, support levels. So, we have a support level right here. Boom, nice reversal. Boom, get that, right? Another pullback right here, and then all of a sudden, you get a reversal right here, you know, at this support level. Right? And then, quite sure we get something around here. This one didn't work, which is okay because, you know, you're never going to get a 100% strategy. You know, overall, you see that the market is respecting uh these support levels right here when the market's going up. Okay? These support levels are definitely, you know, being respected. So, that is a great way to trade reversals um when it comes to the trend, okay? You're looking for that pullback, and then, boom, you're trying to catch that reversal near that support level. Or if it's going down, near that resistance level. All right. So, let's go to last part, which is when not to trade a reversal. So, let's go. All right, guys. So, the best time to not trade a reversal when the market is just strong. You see how the market is making these small pullbacks? This is when you really don't want to try to time the top, okay? Because, you you know, you might say, "Man, the market been trending out, you know, trending for a long time. It has to go down, right? " All of a sudden, you try to sell the market, right? And then, you see the market going down a little bit, and then, it goes down right here, and then, you say, "Oh, yes, it's going down. " And all of a sudden, boom, goes right back. He's like, "Okay, I'm going to wait for more selling. Okay, I'm going to sell right now. " Sells a little bit, and then, guess what? Boom. All right, I'm going to sell right now. Sells a little bit, and guess what? You might get a little profit right here, but guess what? It comes right back up. Right? Boom. "Oh, man, it has to go down more. All right, let me sell right here. All right. " And then, stopped out. Let me see. Let me see if we get stopped out on this one. It's not going nowhere. Boom. All right. Well, so, you really don't guys, you really don't want to trade any type of trend like this, okay? You really don't.

Notice how it came right back up. So, to me, any type of trend that's giving small pullbacks like this, where it's just going up, small pullback, small pullback, small pullback. Guys, just wait. It's best to wait for any some type of like crazy break to the downside, maybe a trendline break or crazy selling, and you see a whole bunch of selling to the supply, maybe a supply zone or whatever. That's when you say, "All right, maybe it's time to get in. " But, a market like this, just go with the trend, and that's the best way to do it. So, that's all I have for you guys today. If you enjoyed this, you know what to do. And if you're starting trading and you have small capital, make sure you watch this video right here. It's going to basically tell you why you should trade smaller, especially if you're starting off and you're not profitable yet. So, check that video out.