MR Reversal Patterns 4

MR Reversal Patterns 4

In the "Masters of Risk" trading system, one of the main concepts is related to places where markets change direction. In fact, this is a change in priority and a violation of the trend structure at the extremes of the market, where supposedly there are or would be stop-losses of "smart" participants who are outside the boundaries of the accumulation of volume. For this reason, we call them "Reversal Patterns"—places with a lot of weight for the start of a new and strong trend.

• You can see "Reversal Patterns" from a time frame of your choice—the indicator is multi-time frame.

• Through the indicator, you can see the changes in the trend structure of the market.

• The indicator shows the key places where the price movement changes its direction.

• The patterns contain accumulated volume in the market.

• The structure of the patterns is similar to the "MW" indicators but is created from scratch by the author's methodology.

• Reversal pattern 1—"Change of priority" (“Pereprior” in Russian language)—indicates a strong change in trend direction or a tendency. It is characterized by updating the reasonable extremum Low from the uptrend and High from the downtrend.

• Reversal pattern 2—"Violation of trend structure" (“Slom“ in Russian language)—indicates a less pronounced change in trend direction or a tendency. It is also characterized by updating the reasonable extremum Low from the uptrend and High from the downtrend.

• Of the Patterns—"Reversal pattern 1" is more powerful than "Reversal pattern 2" for breaking the tendency of market movements.

• The indicator shows the "Structural levels" where price movement in a given direction has broken the structure of the pattern. The structural level line continues to the first possible price test point where a breakout occurred.

• The indicator shows "Stop loss" places. You can see how the "Big" players are hunting for stop losses.

• In combination with the "MR Volume POC Levels 4" indicator, you can track key places where volumes are absorbed and then new volumes appear in the opposite direction. Volumes in the "Reversal Patterns" structure are like fingerprints.

• In combination with the "MR Range Breakouts 4" indicator, you can see how buyers and sellers are distributed in the "Range". Since every trader waits for confirmation that their market entry is correct, the appearance of "Reversal Patterns" in the "Range" forms the accumulation of the open positions in a place that we define as a "Point of Control" in the volume profile of the "Range". During the movement of the price in a trend, you can see how "Balances" are formed according to the "Auction Market Theory". 

• In combination with the "MR Volume Profile 4" indicator, you can see how the volumes are distributed in the "Reversal Patterns".

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