5 Bar Reversal Trading Strategy Is A Must Have Tool

5 Bar Reversal Strategy hinges on looking for 5 consecutive bullish or bearish bars and then waiting for a reversal candle. This is a very good counter trend trading strategy that can give good gains. 5 Bar Reversal Strategy has been explained beautifully in this article. You can also watch this youtube video that explains this 5 bar reversal strategy in detail.

As you can see this is a pure price action based strategy. Trading solely based on price action is also known as naked trading. As said above this is a counter trend trading strategy. So always be cautious and take profit when price hits EMA 21.

This is also a good forum post that explains how to trade with this strategy plus it also gives you a 5 bar reversal pattern indicator that you can first try on your demo account.