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Learn a Little Known Forex Trading Signal in an Hour
Few Forex traders know about a "little known" trading signal, the RSI Reversal. Discovered by Andrew Cardwell a student of the RSI inventor, Welles Wilder, it remains a secret among many traders. A standalone signal that can be learned in an hour.
By: You Learn Forex
After nearly 4 years of study, research and trading Reversals, author and trader, Paul Dean had this to say about his newest book. "After 4 years of writing about Reversals I decided it was time to write the Cliff Notes to how they can be traded successfully. This book is an easy read for both a beginner and for someone who has been trading Forex for years and would like to see something they have never seen before."
Dean says that the book takes the trader through a step-by-step process starting with how to identify Reversals and how they differ from divergences and why Reversals are the more productive signal to trade.
When asked about what that was Dean said this, "It’s very simple Reversals signal with the momentum of the trend and repeat as the trend continues. This provides traders either multiple entry points or confirmation that the trend they are in is continuing."
The book is divided into two parts. The first part is learning what Reversals are, learning where to find them, how they can be automatically located, how to enter, and how to filter out false signals
"Reversals are pure momentum signals," says Dean. "In fact, I teach how to identify whether there is momentum in the market at the time the trader wants to enter. I call it, 'Momentum First, then the Signal.'"
The second part of the book is an analysis of 40 consecutive Reversal signals and how they would have been either traded or filtered out. "Most traders realize that there is no 100% foolproof method of knowing if a signal is a good one or not. Our momentum entry is very accurate at filtering out the ones that aren't. This increases the chance that there will be little or no drawdown. I think this is a book everyone will learn from."
Dean has written a Forex trading course on Reversals and trading with momentum. His first book was called RSI Fundamentals:
He most recently wrote the Dow Trade which teaches traders how to trade momentum and Reversals around the opening of the NYSE.
Perhaps the most significant thing he created, along with David Moser a trader/programmer, was the proprietary trading indicator, The RSI Paint Indicator. It automatically draws both Reversals and Divergences on any currency pair or time frame and then sends an alert to the screen, email, or text.
"I think traders can make a living off this one trading signal along with an understanding of how to read momentum in the market," says Dean. "It's one of the simplest signals and it is essentially a secret."
Paul Dean is the owner of http://www.youlearnforex.com located near Orlando, FL. He writes a daily blog and sends out a daily newsletter.