فوركس ساتو

PART 7 – REVERSAL SIGNALS
 I will review some typical technical
analysis tools to help you spot market reversals to further your
abilities to work the “Surfing” strategies.
TREND LINE BREAKS
We have already loosely discussed trend line breaks, but here I will
specifically focus on this to ensure you fully comprehend this.
Remember the trader’s saying, “the trend is your friend, until it
bends”. Sooner or later it has to end. Knowing how to trade along
trend lines alone could make you some serious profits. Keep this in
mind.
In an up trend (everything conversely true for a down trend) prices
continue making a series of higher highs and higher lows that
bounce your support trend line. You recognize that your trend has
been broken when (A) prices penetrate significantly through your
trend line (ignore minor penetrations), and (B) your previously
established low has been crossed.
At this point, if you have any open trades, you’d be stopped out
(ideally for a profit).
Once your trend has been broken then you look for trades in a new
way. This is more applicable to our “micro trends” as discussed at
FOREX Surfing Draft forex sato
length in this eBook.
At this point you wait to see what happens. If you are still well
within a trading session then do the following, but if you are near
the end of a trading session time then simply take your profits and
shut down your computer. If prices continue to rise, and
**exceed** (not just comes close as it could be forming a double
top or tweezer top as explained later) the peak high then you could
look another suitable wave to continue a conservative climb. The
micro trend line break may have simply been a larger wave in the
overall climbing market.
If your prices continue to fall making lower lows and lower highs
then you might be able to catch a few pips as it has turned around.
Look to see if your reversed trend is part of a larger fibonacci swing,
or perhaps it has bounced a trend line from a larger time view. Look
at your Hourly charts to check if you can spot any reasons why your
trend has ended. If you see good “reasons” then look to jump in on
a wave in the new direction, otherwise just hold off trading until you
spot an obvious trading opportunity.
If your trend line has seriously ended then you are likely to see a
“King’s Crown”, which by itself can royally reward you in your
trades.forex sato