Catching reversals: what's your top-or-bottom setup?

Reversal trading has the best risk-reward and the worst win rate, and the difference is in the evidence you demand before calling the turn: structure breaks, divergences, failed breaks, or a combination.

Catching reversals: what's your top-or-bottom setup? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your reversal checklist?

  • the signals you require before calling a top or bottom
  • how you size a reversal attempt
  • the trend you tried to fade too early
Catching reversals: what's your top-or-bottom setup? — trend versus range diagram
A trending market compared with a ranging one

The chart patterns guide covers the classic reversal structures.

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