4# Key Revesal Bar Trading System

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A bullish Key Reversal is a price bar that makes a new low for the current downtrend but closes above the previous bar's close; a bearish Key Reversal makes a new high for the current uptrend but closes below the previous bar's close. In both cases, the market rejects the excursions into new extreme territory and suggests that the trend — at least for the short-term — has reversed.

 

Very clearly the two examples in the center of the chart were excellent. However, the other two examples failed miserably. Is there any filter we can add to make this type of trade safer? Yes with The Stocastich oscillator.


Key Reversal Bar
Key Reversal Bar

Pairs:all

Time Frame 4H, daily and Weekly

Indicators:

Stochatic (14, 3, 3)

 

Long and Short Entries

a) After bullish Key Reversal with the Slow Stochastic in oversold territory, buy at the highest high of the last four bars plus one point.


b) After a bearish Key Reversal with the Slow Stochastic in overbought territory, sell short at the lowest low of the last four bars minus one point.

Long and Short Exits

a) Exit a long position at the EntryBar Stop LX, the Trailing Stop LX, or the Profit Target Stop LX.

b) Exit a short position at the EntryBar Stop SX, the Trailing Stop SX, or the Target Profit Stop SX.


Key reversal

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Comments: 2
  • #1

    andy (Saturday, 24 August 2019 13:48)

    can i have this indicator please,the key reversal?

  • #2

    Cassius (Wednesday, 26 January 2022 00:41)

    Hello
    Can I have this indicator please? I have been having challenges entering the right position on a trade. This can prove a viable source of help in my trade.