WEBVTT 00:02.490 --> 00:09.030 In this video, I'm taking a look at reversal trading strategies, I do not condone reversal trading 00:09.030 --> 00:15.330 whatsoever in the traditional sense, what I like is trading within the trend. 00:15.340 --> 00:17.280 So in this case, we're in a downtrend. 00:17.280 --> 00:18.990 We get a pullback like shorting that. 00:18.990 --> 00:20.100 It's a reversal of that. 00:20.610 --> 00:22.760 You are not trying to go against the trend. 00:23.250 --> 00:26.070 I can not think of a better way to lose money. 00:26.910 --> 00:33.030 So having said that, Deutsche Bank clearly is in a very negative trend on the daily chart. 00:34.610 --> 00:42.080 So as a day trader, you may want, I don't know, the 15 minute chart, maybe you're looking for that 00:42.740 --> 00:45.440 and you can use the Mac Makdisi. 00:46.310 --> 00:50.930 And the Makdisi is an indicator that has a couple of moving averages and you can see that we have crossed 00:50.930 --> 00:55.340 in the overbought area and that signal is when you're looking to sell. 00:57.630 --> 01:01.390 You can see that that did lead all the way back down to here and beyond. 01:02.130 --> 01:07.320 Yes, there are places where it crosses to the upside, but we ignore that you have plenty of stocks 01:07.320 --> 01:07.980 out there to trade. 01:07.990 --> 01:10.480 You don't need every penny of one particular stock. 01:11.310 --> 01:12.390 That's a sucker's game. 01:12.390 --> 01:14.070 And it's a great way to lose your account. 01:15.350 --> 01:20.060 This being the case, you can see that we've had a couple of crossovers here and got a little bit expensive 01:20.060 --> 01:20.500 on the back. 01:21.110 --> 01:22.340 We broke down eventually. 01:23.770 --> 01:29.650 The stop loss will be based upon support resistance, so if you shorted here, you stop loss would have 01:29.650 --> 01:31.080 been above this next cluster. 01:31.870 --> 01:33.820 You can see that we had a nice little rally here. 01:33.820 --> 01:40.870 We crossed at an extreme in the overbought part of the makdisi above the midline, right at a resistance 01:40.870 --> 01:41.230 level. 01:41.380 --> 01:45.190 You can't ask for a much clearer signal than that. 01:47.340 --> 01:54.060 So other ways that you can look at this might be Bollinger Band. 01:55.260 --> 01:59.640 So Bollinger bands, and in this case, we're in a downtrend on the daily chart. 02:00.940 --> 02:07.660 You're looking for areas where price has broken the top of the Bolander ban, meaning that is more than 02:07.660 --> 02:13.950 two standard deviations away from its moving average, which in this case is twenty you short there. 02:14.050 --> 02:18.580 You put a stop loss on top of the volunteer ban and you continue with the longer term trend. 02:19.000 --> 02:19.990 Same thing here. 02:20.560 --> 02:21.840 You have a stop loss here. 02:22.450 --> 02:25.570 You break below the volunteer ban here. 02:25.570 --> 02:26.710 You take your profit. 02:27.550 --> 02:33.280 That's the thing you're looking for when you go in and out of the Bollinger bands you are not looking 02:33.280 --> 02:38.380 to buy on a break through the bottom in a down trend, you are looking to take your profit. 02:39.890 --> 02:44.900 Every time you get over bond, it's time to sell because, you know, the larger players are still shorting 02:44.900 --> 02:48.650 this market so Bollinger bands can help as well. 02:50.180 --> 02:53.120 And then obviously support resistent. 02:54.580 --> 03:01.660 Which, quite frankly, is the most important thing on the charts, because that's where the buyers 03:01.660 --> 03:02.570 and sellers are. 03:03.340 --> 03:05.020 We're in a massive downtrend here. 03:11.800 --> 03:14.780 Shown resistance there you can see that we didn't make it above there. 03:15.670 --> 03:19.840 We have shown resistance there, which offered support, and then we broke through it and offers resistance. 03:20.290 --> 03:24.040 And this is a simple matter of following the trade. 03:24.040 --> 03:28.900 Once it breaks through these levels and place in your stop loss behind each one of these, eventually 03:28.900 --> 03:29.880 you'll get knocked out. 03:30.370 --> 03:33.850 But this way you can have the market tell you when it's time to leave. 03:35.820 --> 03:41.040 I cannot stress enough that you should not be worrying about these pullbacks if you don't believe me 03:41.040 --> 03:47.190 on the daily chart, you can see that during that time frame we had some nice pullbacks, but we're 03:47.190 --> 03:48.210 still going lower. 03:48.510 --> 03:49.940 And that's all you need to know. 03:50.340 --> 03:52.410 You do not go against the market.