You may have come across several trading systems in your trading career. The major objective of any system is to let you analyze the market in one go. Vertex Reversal Trading System is also meant to help you find reversal patterns quickly.
What is Vertex Reversal Trading System?
A vertex reversal trading system identifies and trades based on changes in an asset’s price trend. The system is based on the idea that when a stock’s price reaches a “vertex,” or a point of inflection, there is a high likelihood that the stock’s price trend will reverse.
The system may use technical analysis tools such as SMAs, trendlines, and chart patterns to identify potential vertex points and to make buy or sell decisions based on the direction of the price trend. Here’s how it looks on the chart:
How to trade Vertex Reversal Trading System?
The system is quite self-explanatory. You can see red and green lines encapsulating the price. The bold lines are extreme borders, while the dotted lines lie within bold lines. These lines represent the potential reversal zones, or in other words, you can call them dynamic reversal zones.
You can also see a pivot line as well. The line tells you whether the price is in a bearish trend or a bullish trend. There are arrows on the chart that indicate a potential trend reversal.
You can also see a Vertex Mod oscillator on the chart. The zero line of the indicator is decisive. If the oscillator moves above the zero line, it is a long opportunity and vice versa.
A great advantage of the system is its alerts. You come to know when an extremely oversold or overbought condition occurs. You can then manually analyze and find the right opportunity.
Let’s find the buy setup using the system:
- You should wait for a price rejection around the bold green line.
- Wait for the bullish rejection candle to close.
- You should look for a Vertex Mod oscillator to cross above the zero line to enter the long trade.
- You could place the stop-loss below the low of the rejection bar.
- You could place the take profit at the next horizontal level or manually exit when the price hits the red lines zone.
Let’s find the sell setup using the system:
- You should wait for a price rejection around the bold red line.
- Wait for the bearish rejection candle to close.
- You should look for a Vertex Mod oscillator to cross below the zero line to enter the long trade.
- You could place the stop-loss above the low of the rejection bar.
- You could place the take profit at the next horizontal level or manually exit when the price hits the green lines zone.
The Vertex Reversal Trading System comes with nice indicators that reveal the trend’s nature and let you easily find potential reversals. However, you should run the system on a demo and try different pairs and timeframes to carve your strategy according to your own preferences.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.