Understanding Our Approach: High-Probability Reversals

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Understanding Our Approach: High-Probability Reversals with Price & Time Analysis

Hello Fellow Traders!

We often get asked about the core principles behind our analysis here on TradingView. Today, we want to share a key part of our methodology: how we combine Price Analysis and Time Analysis to pinpoint potentially high-probability reversal signals in the market.
Our goal isn't just about finding any setup, but finding setups where the odds seem stacked more favorably for a potential trend change. We do this by looking for confluence – where different factors align.

1. Price Analysis: Finding Where the Market Might Turn
What it is: This is about identifying significant price levels on the chart. Think of these as important zones, not just single lines.

How we use it:

Support & Resistance: We look for historical areas where price has repeatedly bounced off (support) or struggled to break through (resistance). The stronger and more tested the level, the more significant it becomes.

Price Action Clues: We watch how price behaves when it reaches these key levels. Are there strong rejection candles (like pin bars or engulfing patterns)? Is momentum slowing down? These clues tell us if buyers or sellers are stepping in or losing control.

2. Time Analysis: Finding When the Market Might Turn

What it is: This adds the dimension of time to our price analysis. Markets often move in cycles or react around specific time points.

How we use it:
Timing Cycles: We look for potential cycles or rhythmic patterns in price swings. Sometimes, trends tend to exhaust themselves after a certain duration.

Time Convergence: We pay close attention when price approaches a key Price Level (from step
1) around a potentially significant Time point (e.g., end of a known cycle, specific session timing, alignment with time-based indicators if used).

The Synergy: Combining Price & Time for High-Probability Signals

The real power in our approach comes when Price and Time align.

Imagine price reaching a major historical resistance level (Price Analysis).

Now, imagine this happens exactly when a known time cycle is expected to complete (Time Analysis).

This convergence signals a potentially higher probability reversal point than if only one factor was present. It tells us that where the market is and when it got there are both significant.

  • How You Can Apply This Concept:
  • Identify Key Levels: Mark major support and resistance zones on your charts.
  • Observe Time: Become aware of market timing – session opens/closes, news events, or potential cyclical patterns you observe.
  • Look for Confluence: Wait for price to test a strong level around a potentially significant time point.
  • Seek Confirmation: Always look for confirmation signals (like candlestick patterns or divergence) at these points of confluence before considering any action.


Important Note: Trading involves significant risk. This methodology aims to identify higher probability setups, but no method guarantees success. Always use proper risk management and conduct your own analysis before making any trading decisions. This is shared for educational purposes.

We hope this gives you a clearer insight into our analysis process! Follow us here on TradingView to see how we apply these concepts in our regular updates. Feel free to ask questions in the comments – we're all here to learn together.
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