How to Find Trend Reversal Points in Olymp Trade without Indicators.

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

What are Trend Reversal Points?

Trend reversal points are levels in the price of an asset where the price tends to change from one kind of a sustained movement to another.

Has the price been in a sustained upward movement?

It will tend to change direction and begin forming a sustained downward movement at a trend reversal point.

The opposite will occur for a price that has been in a sustained downward movement at a trend reversal point.

So you are used to applying technical indicators on Olymp Trade to spot trend reversal points? You agree with me that such indicators may at times not be as efficient and mislead you.

And so the question is, can you find trend reversal points in Olymp Trade without indicators?

The answer is clear – yes you can!

In this post, I will show you exactly how you can do that.

Finding Trend Reversal Points in Olymp Trade without Indicators.

Here are ways you can find trend reversal points in Olymp Trade without any indicators:

  • Market Structure.
  • Support and Resistance.
  • Parabolic Price Move.
  1. Market Structure.

You can use market structure to identify trend reversal points in Olymp Trade.

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

Market structure is divided into 4 stages.

A. Accumulation Stage.

This is a price range after a downtrend.

It means that sellers and buyers are in a state of equal strength and that is the reason the market is not showing any particular trend.

Here, you will observe almost an equal number and size of bullish and bearish candlesticks.

If you had applied any moving averages, they will be horizontal and the price will be moving up and down about them.

Having been in a downtrend, a slowdown means that buyers will take control of the market soon. It is a sign of defeat for the sellers, because why then would the market slow down?

Accumulation stage

 

B. Advancing Stage.

Buyers finally take control of the market.

The price ultimately breaks out of the upper limit of the accumulation stage range and rallies upwards.

The market which had previously been on a downtrend has effectively reversed to an uptrend.

It is an advancing stage because the price is advancing upwards.

The market is on an uptrend, with more and longer bullish than bearish candlesticks.

The shift from an accumulation to an advancing stage was an upward trend reversal point which didn’t require any technical indicators to spot.

Market structure - The advancing stage. Trade the Trend

 

C. Distribution Stage.

This is a price range after an uptrend.

It means that buyers and sellers are in a state of equal strength and that is the reason the market is not showing any particular trend.

Here, you will observe almost an equal number and size of bullish and bearish candlesticks.

If you had applied any moving averages, they will be horizontal and the price will be moving up and down about them.

Having been in an uptrend, a slowdown means that sellers will take control of the market soon.

It is a sign of defeat for the buyers, because why then would the market slow down?

Distribution stage

D. Declining Stage.

Sellers finally take control of the market. The price ultimately breaks out of the lower limit of the distribution stage range and rallies downwards. The market which had previously been on an uptrend has effectively reversed to a downtrend.

It is a declining stage because the price is declining downwards.

The market is on a downtrend, with more and longer bearish than bullish candlesticks.

The shift from a distribution to a declining stage was a downward trend reversal point which didn’t require any technical indicators to see.

  1. Support and Resistance.

Resistance is an upper level where the price which had previously been on an uptrend seems to reverse downwards.

Support, on the other hand, is a lower level where the price which had previously been on a downtrend seems to reverse upwards.

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

Support and resistance don’t need any trading indicator to see.

Just look for a zone where most candlesticks seem not to close above and that will be your resistance level.

Similarly, look for a level where most candlesticks seem not to close below and that is your support level.

The price will always tend to reverse downwards once it comes to resistance, hence a downward trend reversal point.

On the other hand, prices tend to reverse upwards once they hit support, hence an upward trend reversal point.

Support and resistance levels work best if identified at a timeframe higher than the trade entry timeframe.

Furthermore, a resistance level at the upper limit of the price range of a distribution stage works best.

It is the same for a support level at the lower limit of the price range of an accumulation stage.

Distribution stage

  1. Parabolic Price Move.

You might be wondering what the term ‘parabolic price move’ means.

I will explain it.

A parabolic price move is where a market trend proceeds steeply without a retracement.

Have you been trading for some time now?

You might have come across charts where uptrends proceed straight with long bullish candlesticks and no bearish ones.

Similarly, you might have encountered downtrends proceeding straight with long bearish candlesticks and no bullish candlesticks.

That is what we mean when we talk of a parabolic price move.

So how does a parabolic price move help us find trend reversal points on Olymp Trade?

If the price has been on an uptrend and suddenly shows an upward parabolic price move behavior, it may be implying that it’s about to form a top and reverse downwards.

Has the price been on a downtrend and suddenly shows a parabolic price move downwards? It may mean that the market is about to bottom out and reverse upwards.

You didn’t require any indicators to see a parabolic price move on an uptrend.

Neither did you require any to see a parabolic price move on a downtrend. It’s that simple.

Final Thoughts.

Are you tired of missing trend reversal points when you use technical indicators on Olymp Trade?

Finally, here are ways to perfectly spot trend reversal points without any indicators. That way, you can trade trend reversals on Olymp Trade like a pro.

Happy Trading!

Kenn Omollo is an investment writer and a business management consultant at Joon Online Limited. Reach him at - kenn@joon.co.ke

Comment on this post