The Reversal Strategy with Arithmetic Trader minimizes market noise in shorter timeframes and generates smoothed trend signals using advanced momentum indicators.
This system comprises Bollinger Bands, Parabolic SAR 2.0 MTF, Arithmetic Trend Signal, and WA Explosion.
When the price rebounds from Billinger bands’ overbought/oversold areas, the Parabolic SAR examines the trend condition for assessing the trading probability. Next, the Arithmetic Trend plots arrows to show the point and direction of the entry.
The WA Explosion is a volume-based trend filter. When the strategy formulates a trend reversal signal, we use the Explosion signal for finalizing trading decisions.
Buy Signal Generation with Reversal Strategy with Arithmetic Trader
The price rejecting the lower Bollinger band suggests an oversold market. Also, it hints at an upcoming bullish price surge. When the price breaks above the mid-Bollinger band, it confirms the market is moving out of its current oversold condition.
Afterward, the Parabolic SAR MTF turns white, and the Arithmetic Trend arrow points upward to confirm a buy order. Additionally, the WA Explosion bar turns green and moves above its average line, indicating the market is moving within a strong bullish momentum.
Sell Signal Generation with Reversal Strategy with Arithmetic Trader
Before going short, it is essential to confirm the market has hit the overbought area or the higher Bollinger bands. Also, the Parabolic SAR MTF turns blue and appears above the candlestick high suggests the trend is bearish. Y
ou may go short once the Arithmetic Trend plots a rede arrow. Alternatively, confirm the sell order when the WA Explosion bar becomes red and spikes above its average line.
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Traders, especially beginners, often get puzzled by the complexity of advanced systems. So, choosing a simple but genuinely effective trading strategy is still a challenge for individual market participants.
The Reversal Strategy with Arithmetic Trader represents a balanced trade signal system with momentum, trend, and price-level indicators. Besides, it consists of simple trading rules which are very easy to follow.
If you are looking for a reliable day trading companion, the Reversal Strategy with Arithmetic Trader might be the right choice.