Reversal Trading Strategy (counter trend)
1) I look for stocks hitting new highs or new lows
2) I look for at least 5-10 consecutive 5min candles of the same color
3) I look for RSI below 10 or above 90 to indicate extreme conditions
4) I think of these stocks as a rubber band, the more stretched out it is, the better the snap back potential
5) I look to buy the first candle that begins to reverse with a stop either at the high/low or minus 20 cents.
6) I use trailing stops to keep myself in these winning trades as long as possible.
Bottom Reversal Strategy Examples
Top Reversal Examples