How to Spot a Reversal Trade

How to Spot a Reversal Trade

Reversals occur quite often, but if you do not know what to look for, you cannot trade them.
Reversals are one of the strongest price action setups, and one of the easiest to trade. And because they occur so often, you can trade this setup exclusively and be a profitable trader.
In fact, for years Forex trading strategy focussed on reversals only. However, these days I trade more price action setups.
Reversal trades come in three parts:

1. The preceding trend.
2. The Indecision candle(s).
3. The reversal trend.

Let’s break down each of these parts.