In this video, you will look at a high probability reversal trading strategy.
Look at this example. This is a 1-hour EUR/CAD chart. This descending price channel indicates that the sellers are in control. At some point, the sellers lose control. Market breaks to the upside of this channel.
So, here is your entry for a long position with your stop-loss below the recent lows of the channel. However, you are looking for ideal market conditions here to cause less drawdowns for your entries.
Your take-profit level is marked at this green line. However, after the release of the non-farm payroll data, the market falls back to this broken resistance level, which is now acting as support. Here, you can take a long entry again with your take-profit level as the previous one.
Besides the technical setup, you need to focus on ideal market conditions.
