Trading Entries after a Rounded Bottom
05/07/2013 6:00 am EST
Learning how to trade reversals from a bottoming process can be very rewarding. We should never try to find the exact bottom or top, but rather to read price and volume action to determine the best entry locations with the least risk possible.
The market environment and sector strength will be more important in how a reversal will work, so make sure to evaluate those elements before taking such trades.
On this four-minute video, veteran trader Ron Wagner will show you how the second entry after a bottoming process can often be more reliable.