In this post, I will teach you how to identify and trade FVG on trend reversals. I will further show you how to tell the difference between a trend reversal and a trend continuation.
We will go through 2 examples, as we do with most of our trading strategies. The examples will take place on the 1h time frame only.
EXAMPLE 1. How To Identify The Trend Reversal And How To Trade it
First of all, I want you to take a good look at the image above. The uptrend, the down move, the “secret”, and the entry. We will mostly focus on the “secret” move.
Before we continue, the results that you see above are the results of our trading signals group from the past 3 months. Join us now in order to get funded and get payouts!
First of all, we need to identify a trend on the 1h time frame. Here we see that we are clearly moving in an uptrend, since we are creating higher highs and higher lows.
Nonetheless, the purpose of this article is to help you understand how to identify and trade fvg on trend reversals. Hence, we need to proceed to the down move part.
If we zoom into the last part of price action, we now see that price has broken below an 1h low and has given us a change of character (choch).
Of course, we understand that this choch might just be a grab of liquidity in order for price to continue higher. But how can we know whether this is going to go higher or whether this is going to be a retracement?
This is the so called “secret”. Look at how price is retracing back. It is ranging instead of going straight ahead up with powerful bullish candlesticks.
This is exactly how it looks if we zoom out. Let’s now see how to trade the FVG on trend reversals.
First of all, we go ahead and we highlight the highest FVG area and we extend it to the right.
Secondly, we go ahead and we identify the middle of this 1h FVG. This is our 50% point.
The 50% point is our entry. We are going to sell from this exact point.
Before we continue, if you want to get the guaranteed results that my other students had, then go ahead and book your 1on1 mentoring session now!
This is how our entry looks. Exactly at the 50% point of the 1h FVG. The stop loss goes above candlestick number 2 out of the 3 that created the FVG. For take profit, feel free to target any areas of liquidity according to your liking.
We will now move to the second example, which is a trend continuation example.
This is the outlook of the moves. Take a moment to compare it with the overview of the trend reversal move.
Let’s compare them together. Again, this is the part of example 1 that we analyzed beforehand. Look how price is retracing slowly in a ranging manner.
This right above, is the “secret” part of example number 2. Look how price is retracing with strong bullish candlesticks instead of ranging.
I will teach you a simple entry here in this free post. You can enter instantly after the creation of 2 strong bullish candlesticks as you see on the image above.
You can place your stop loss below candlestick number 2. If price “wants” to continue higher, more likely than not it is not coming back below candlestick number 2.
This is the overview of the entry, stop loss, and take profit. Feel free to target any area that you want.
Signals, Mentoring, ChrisFX Academy
If you want to get funded and get consistent payouts like many other of my students, then go ahead and join my exceptional services!
