The main objective of the strategy is the moment of reversal in the trend, which allows you to open a deal almost at the beginning of a new direction of prices.
An example of the opening transaction for the buying.
Fig.1. The reversal of the downtrend
In Fig. 1 shows an example of reversal of the trend. The price is moving in a downtrend for a long time.
In the breakdown of the trend line up not recommended to open a deal.
After the breakdown should wait the consolidation above the trend line, which is shown in Fig. 1.
The transaction on purchase need to open after the price would be higher than the local minimum of the newly formed upward trend. The Stop put under local minimum value, under the last rollback.
The example of the opening transaction for the sale.
In Figure 2. is an example of opening a deal to sell. The price was moving in the uptrend. At the breakout of trend line down as well as in the previous version waiting until the price some time trade below this line. A deal to sell in this case should be opened, when the price has broken down the most recent minimum value of the newly formed downward trend. The Stop put on the local maximum, above the last rollback.
Fig.2. The reversal of the uptrend
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