Reversal Strategy Trading Plan

Reason and Goals

‌Reasons - I trade for Freedom of time , Financial Freedom and to be my own Boss This is my favourite Business in the world This my main source of income

‌Goals -

Make less trading Mistake Each Month , treat

‌Never Break your trading rules

‌ my trading like a business and follow all trading rules.

Strategies

Indicators - I use RSI to identify market overbought (70) and oversold (30) and RSI Divergent

and I use ATR Indicator to clearly define stop loss placement.

Conditions -

‌1.Go with higher timeframe trends e.g uptrend market then go for bullish reversal .

‌Area of value Major level of Structure At an (OTZ) Major Support and Resistance On Higher timeframe.

‌Higher Timeframe goes oversold this is for a bullish trade and overbought for bearish trade.

‌Drop Down to the trading Timeframe Entry Timeframe also goes either oversold/overbought for the best trades possible has RSI divergent

‌Look for Chart Pattern like a double top and bottom

Entry Reason -

My actual entry is some type of buying/Selling Pressure

Due to a candlestick Engulfing , Pin bar , hammer

That show me Buyers/ Seller are stepping after the chart pattern .

Stops loss and Targets -

If the entry candle ATR is between 20-29, then I use a 20 pip stop loss above below the previous swing level. If the ATR of the entry candle is 30-49, then I use a 30 pip stop loss above/below the previous swing level. If the ATR of the enury candle is between 50-99, then I use a 50 pip sop los above/ below the previous swing level. If the ATR is above 100, then I use a 100 pip stop loss above/below the previous swing level. And Target First 1:1.5 Second 1:2 The Previous Support/Resistance

Risk Management Plan -

Here you will need the 4 main parts of a Risk management plan clearly defined. Including the exact numbers for your Risk Capital , Max Exposure, Risk per trade, and Max acceptable odd.

‌Risk per Trade 1/ 2.5 %

‌Day Max Drawdown 5 %

‌2 Stop Loss a Day With 2.5 % Risk

‌Risk to Reward Min 1:1.5

Time to Trade -

I trade every 1hr candle dose based on Reversal Trading Strategy.

Reversal Strategy Trading Plan