THE NUMBER ONE Way To Trade Reversals

[@dlombard]

Love the play by play. It's really helpful to hear why you DON'T take trades.

[@SergeyIvanov15024]

Very good analytics. Brooks style trading at clearest form.

[@rubenjuarez9713]

Thank you Thomas

[@_Randwulf]

Keep 'em coming Thomas... Your videos are the best... 👍😎

[@Frdthn77]

Thanks Thomas for the video nice feedback and analysis

[@LitoTho]

love theses types of videos! they are so helpful thank uu

[@vredchasing8926]

Best trading channel on youtube.

[@ThomasWade]

I am honored.

[@dekibrebre]

Thank you Thomas for another great video When I think about reversal I use Mack's teaching technique and that is to notice the reversal signals: Signal 1 - Previous DT has been played out Signal 2 - PA (candles) Cut through EMA without resistance Signal 3 - PA makes SUDDEN HH!!! Signal 4 - followed by the HL Signal 5 (optional but preferable) - PA is above EMA preferably Cheers mate

[@ThomasWade]

Mack is ok with price being still below EMA? Really? In trading ranges you can take reversal patterns even not taking the EMA into consideration but it will help you filter lot of bad trades.

[@dekibrebre]

@@ThomasWade I believe yes if there is room to scalp 4 ticks back to the EMA. You are scalping 8 ticks so your strategy is not applicable. Yes for trading ranges you are absolutely correct.

[@dekibrebre]

@@ThomasWade I really apologize Thomas you are right about not entering below EMA on reversal. I mixed reversal signals with Mack reversal trades when PA is far away from EMA. My bad. I am really sorry once again.

[@ThomasWade]

@@dekibrebre No problem at all: )

[@asis19999]

Great Video, you have explained all the niceties of trend reversal

[@ukulelebatz]

I learned so much, Thomas. Three green days.

[@gskkap]

Really appreciate your tutorial videos! Thank you Thomas

[@MR-rh7li]

Thank you, Thomas, for this wonderful breakfast lesson. It is always helpful to compare your view of the market with what we do ourselves. Even if I repeat myself, what you are doing here is absolutely invaluable. Many thanks for that. Michael

[@ThomasWade]

Appreciate it🙏

[@ricko6391]

Great stuff Thomas.

[@vateyogi2565]

Awesome explanation.

[@jantrader1834]

Thanks bro for the feedback. I love ur videos !!

[@Roy-xe9is]

Another invaluable tutorial.

[@s08tank]

As always Thomas does a great job of helping others with price action trading! Thank you.. Regards-John

[@gerardoosio]

Thanks for your videos friend, not easy task to identify reversals at the very beginning, not for trade, but for stop to look entries on the expiring trend, failed second entries help me, but most of the times, the same candle that makes failed the second entry is usually the entry to the counter-trend / reversal trade, and scares me. I did try confirming with 5 minutes chart, but not always is useful.

[@markelshnops]

Awesome analysis! I will credit my upcoming success as a trader to you!

[@funstoryshort445]

Thanks a lot for the good videos, I mean actually helpful videos. And could you pls make 1 or 2 more videos about some more reversal scenarios in some more detail and more examples? Stay healthy, good luck in trading!✌

[@traderzzz123]

Love your videos, do you recommend using these strategies on NQ 2000 tick chart as well?

[@ThomasWade]

NQ 2000 is great tick chart. It can be slightly slower so you can play around with 1500. Both are good.

[@richardcrook892]

Awesome play by play. I got that 2es after the new low but I was only scalping 4 ticks, not 8 like yourself. But great explanation of it, as worked this time but maybe not the next. Thanks

[@ThomasWade]

Yeah this was one of very few trades which would work for 4 ticks but not 8. But I according to price action rules I think it was still too risky. Eventhough I see why traders took it, sometimes after big downtrend you can get a second leg to a new extreme and this was at 2 key entry points..

[@p.e.3953]

Amazing play by play and one of your better videos to date, could of saved me a couple of hundred dollars if I would have watched it before trading today! Very Well Explained, Thank You...

[@Metodo3]

0:33 that's a 90 degree ema overshoot not to trust ! 7:24 i see a triple bottom before the reversal, the second & third are overlap

[@ThomasWade]

I treated those two bottoms as one, that is why to me it is double bottom. Technically you are correct though.

[@Roy-xe9is]

At 15:55 there is the low of the final, shorter leg of the downtrend after a break, then prices moved to a higher low seven bars later. Is this not considered the new low because the real test comes from the larger timeframe downtrend? Many times I follow the shorter-term channels within the larger ones, and finding the true retest is still confusing. Thank you.

[@ThomasWade]

At 15:55 on the chart? Price is still in a big downtrend. You may look at it like that. Following short term lines in bigger pattern but not always price is going to act that way. You can of course use the short term line, it will only benefit you.

[@Roy-xe9is]

@@ThomasWade thank you sir.

[@deepakpathania4206]

Hi sir. I have been watching your videos , it's very helpful. Can you explain what's first, second entry long and shorts

[@ThomasWade]

Hi, these are the main videos where I discuss these setups in more details kzbin.info/www/bejne/hH_ddJidpNiLq5o&ab_channel=ThomasWade kzbin.info/www/bejne/faO1k4J_qcx_ncU&ab_channel=ThomasWade kzbin.info/www/bejne/aqiQmKOsnM94aKM&ab_channel=ThomasWade

[@rl9590]

Thanks for the great info ! I hear you mention trend/trade rules is there a book you recommend so I can catch up to your technical analysis?

[@ThomasWade]

I call it price action rules or trendline rules because this is how market moves. There is a reason behind every trade and in results into market making calculated moves and following its patterns. If you want more condenced informatin you can checkout Al brooks materials or Pats trading materials. But there is no written rule in stone that after a break, new extreme will be retested. This is what happens most often over and over again and this is why I call it a rule.

[@erikcortez9398]

Thanks Thomas I took 3 weeks break but I’m back !

[@ThomasWade]

Let's get back to grind!

[@dsvitale]

Brother, I appreciate your teaching. I would like more structured training. How can I get that from you?

[@ThomasWade]

Thank you, you can contact me at [e-mail]

[@darren2280]

Hi Thomas, very informative video. Wondering for time frame wise, which time frame will be best to trade trends? 1min or 5min??

[@ThomasWade]

Both of these timeframes are good to trade. They are similar. I would start focusing on 5 min chart first and see if you are patient enough for setups.

[@cavalrytrader5713]

Once trend line break and test the extreme. if the reversal strongly penetrate the EMA, then come back to EMA, so we can look for fail 2nd entry of previous trend. Is this will consider at least a good reversal pattern? Thank you Mr. Thomas.

[@ThomasWade]

Spot on. This is the reversal pattern.

[@dekibrebre]

When you were explaining the second entry short setup around 10:45 into the video my thought process was like this: Day type is downtrend so on the trend days I want to sell pullbacks to EMA, TL (top or middle), or strong resistance area. So these areas are my key entry points. NOW I wait for PA to come to these areas When this setup was forming the PA is above both the middle trend line and EMA. At the same time, the setup is not close to the top downtrend channel line so the three key entry points options are not satisfied. The only key entry point option that is left is the strong resistance but by the time the setup was triggered, we are in obvious congestion since we have 3+ bars overlapping. So if I want to enter this trade my entry point would not be at the resistance of the congestion but rather at both support of congestion and EMA. Basically, the entry point (at the support of the congestion) is breaking the rule SELL high. To trade congestion we need to fade breakout from the congestion at the top and this did not happen. Basically what I want to say is that all the major checkmarks need to be positive for me in order to take the trade 1) Yes this is the second entry short 2) Yes the signal bar is an excellent bearish reversal bar 3) Yes the bias is down and I want short trades 4) Yes the entry point is ok with respect to the last swing low (however not with respect to EMA and congestion support) 5) Here is the most important thing. In my opinion, the setup is not at Key Entry Point KEP. So all the above positives are dropped down due to this big NO-NO for me. I hope you Thomas agree with this analysis. Can you share your opinion about this thought process? Cheers mate

[@ThomasWade]

Your analysis was spot on. Thanks to your process you managed not to get sucked in. Good job.

[@manu-kt5wf]

When do you know "a trend played out" ?

[@ThomasWade]

When the trend tests new extreme after trendline break.

[@mauriceamaraggi8098]

But I don’t understand why you don’t join the trend when it is developing so clearly (around 4 min)

[@ThomasWade]

It was 1ES so for this reason I didn't mark it.

[@mauriceamaraggi8098]

@@ThomasWade I understand but at some moment it is clear there is momentum and a leg is developing why not entering?

[@DeltaScalper]

I see what you see, but somehow will take the most random non relevant trade. ;o(

[@ThomasWade]

That's the mental side of trading. For whatever reason our minds force us into taking random and weird trades even though we may be aware what we are doing is not the right thing, we will still take the bad trade. With experience and more screen time our psychology will improve but it is really important to play the numbers game and take all the good setups we see and in the end the random losing setups will be a small amount compared to all the winners. There are also numerous hidden reasons why some traders do these mental mistakes but it would require deeper analysis. Mark Douglas and his materials are mandatory.

[@gskkap]

I know what you mean. I guess that's gonna happen until we become experienced scalpers...only time, patience, and Thomas' videos will get us through and fix that ;).

[@graerindley6312]

I think patience is a key ingrediant.😀