The tools used are RSI and TRENDLINE, both of which are manual, not automatic indicators.
- This reversal trend analysis method should generally practice Trendline skills, both on price charts and on RSI. Opportunity to deal with Trendline is one of the most common trading tactics today, because many Trader in the world to apply this method of predicting the trend is effective, the price reacts strongly at the support and resistence points. The key point is the time of entry, the time of entry.
Advantage: Higher profit taking targets. Bring higher profits.
The downside: there will be risk when the Sideway market, when there is NO clear trend, should not apply.
Observe the following situation:
Based on the above chart, at this point the market is still on the upward momentum, but the RSI does not rebound from Trendline support for breaking the trendline is a signal of a short-term downtrend.
Therefore, if anyone is holding buy (BUY) should take profit
Traders have not entered the market yet, this is a good SELL opportunity, a stop loss point at the "temporary" peak and profit taking target at blue support, this take profit is predicted by the support. aids in the past.
the results:
The market fell as expected, RSI after the breakout, below the level of 50 and the force of buying exhausted. Take profit.
In general, determining when and where a reversal trend plays an extremely important role in trending PP is key to the success of this PP issue.