- A bearish reversal set up will be completed if the next trend peak occurs below the upper Bollinger Band. A typical strategy would be to sell on the first close below the low of the candle making the peak
I’ve posted a couple of these set ups this week and both have so far had a good decline from the entry level ( see EUR:GBP and FMG). This chart looks similar i.e. a steep rally putting the higher time frame stochastics ( in this case on the weekly chart) well into the overbought zone and so confirming the potential for a significant reversal in this daily chart.
If you are interested in how this set up works, I gave an explanation in the EUR:GBP post earlier this week which you can access below
If we get a set up, I’ll post the strategy as it unfolds
Dave and I can be followed on twitter at DaveCharts and RicCharts respectively. We update the blog with trade ideas regularly and you can receive updates direct to your inbox by subscribing