Selling Tops and Buying Lows on Ninjatrader
Selling New Highs and Buying New Lows are known setups with big Profit Potential when we catch a Reversal. But we can also get several losers in Row on a trending or Impulsing Day. It is always recommended to have some additional confirming factors over the zone we want to Buy or Sell. We can add structural factors, like a higher time frame wave possible termination, or well known fib retracement, etc. The more factors providing from different timeframes, the better odds to succeed in our trade. Looking at technical indicators, we can also look for divergence and/or overbought/oversold indications. For example we can look at the MACD ( red line ) making a higher low while price is making new lows : We can also look at a stochastic (red line) and watch for 2 things ; red line is over a defined value, so it is over bought AND it is going down red line is below a defined value, so it is over sold AND it is going up See following picture : I...