The Reversal Strategy: Catching Major Market Turns

The Reversal Strategy: Catching Market Turns

The “Reversal” Strategy is a high-reward trading system designed for the H4 timeframe. It aims to identify major turning points by combining the structure-defining ZigZag indicator with an 18-period Moving Average to confirm breakouts.

1. Indicator Setup

To implement this strategy, configure your chart as follows:

• ZigZag Indicator: Set Period to 150. This high value filters out noise.
• Moving Average: Simple Moving Average (SMA), Period 18.

2. Trade Entries

Long Entry (Buy)

Open a long position when:

1. The ZigZag indicator fixes a Low (bottom of a swing).
2. Price breaks and closes ABOVE the 18 SMA.

Short Entry (Sell)

Open a short position when:

1. The ZigZag indicator fixes a High (top of a swing).
2. Price breaks and closes BELOW the 18 SMA.