Daily Reversal Pattern That Nailed Profit

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#611: Daily Reversal Pattern That Nailed Profit

In this video:
00:35 – Trading reversals and continuations.
00:58 – What to look for when trading reversals.
01:23 – Selling the XAG/AUD D1 for 3.5:1 R:R profit.
03:19 – Traded using a Sell limit order.
04:23 – Brand New Forex Masterclass.
05:02 – Free 1 hour live Q&A Webinar.
05:17 – Blueberry Markets as a Forex Broker.
05:58 – Like, Share and Subscribe

I want to talk a little about reversal patterns, and we had a fantastic reversal pattern on a daily trade just this week. They look really good on the charts, and they can be a fantastic way to profit from the markets. So let’s talk about reversals and more right now.

Hey there traders! It’s Andrew Mitchem here at The Forex Trading Coach with video and podcast number 611.

Trading reversals and continuations.

So I personally trade two different chart patterns. I look for continuation patterns and I look for reversal patterns. Now, if you’ve been following me for any length of time, you will know that I prefer continuation patterns because it means that you’re trading with the dominant trend. But after a pullback or retracement.

What to look for when trading reversals.

However, I also still do look for reversal trades. Now, they can look really very good on your charts, but they do pose slightly more risk because you are trading against a very strong uptrend or downtrend. However, there are a number of things you can do to put more factors in your favor to give yourself a high-probability chance of a successful trade.

Selling the XAG/AUD D1 for 3.5:1 R:R profit.

Now, a great example of that is just this week. On Monday, the 20th of October 2025, we took a sell trade on the daily Silver Australian dollar. So go have a look at the charts — XAG/AUD — on the daily charts, and you will see that Friday’s candle, the completed Friday candle, was an all-time high, but also it closed very strongly back down as a bearish candle and had a number of other things in its favor.

Not only was it an all-time high, but it had a trend line break, it was overbought, there had been recent divergence, and it broke down through the round number of 80 and closed below that level at the end of the week. So on Monday, at the beginning of the week, we suggested and took ourselves a sell trade based off that chart.

Now, if you’ve been following gold and silver against almost everything over the last few weeks and months, you know that they’ve just gone up and up and up. They’re going crazy. And so with anything that does that, there’s always going to be an opportunity for it to get overbought and then pull back. Now, I don’t know — and I don’t particularly care — whether gold and silver, or in this case silver against the Australian dollar, has a massive fall away. It doesn’t really matter for this particular trade. All I’m looking for is a slight pullback based on the candle pattern.

Now, two candles later, we hit our full profit target on this particular trade for a very healthy 3.5 to 1 reward-to-risk. So that means if you risked 1% on the particular trade, you would have made a 3.5% gain on your account, which is pretty amazing considering it took just what — a minute, if that, to place the trade — and two candles later it hit the profit target. So have a look at what actually happened on the chart. Now, we take limit orders.

Traded using a Sell limit order.

So at the beginning of the week, we didn’t just take a market order. We put a sell limit to sell XAG/AUD if the price first pulled back — which it did. It got to exactly our entry level and then turned around as anticipated and went straight to our profit target some two candles later.

That is a great example of a lot of things all adding up together to suggest that that trade was going to work in our favor. When you look at it on a bigger picture, XAG/AUD had been in an enormous uptrend, and it turned over, and we took that opportunity to sell it. As I mentioned, where it goes now, I’m not particularly bothered because I’m out of this particular trade and therefore looking for new opportunities.

It could well pull back and then continue back up again in that overall direction. If that’s the case, that gives us a great buy opportunity, which becomes a continuation pattern. But today we’re talking reversals, and that is a great example of reversal patterns.

If you’d like to find out more about how we trade and how we can teach you and help you to become a successful trader with our help — after all, we’ve been doing this for more than 16 years and have clients in 109 countries — we kind of know what we’re doing, and we know what works and what doesn’t in terms of the strategy and teaching.

Brand New Forex Masterclass.

If you’d like to find out more, click on the link. You’ll find my 30-minute On-Demand masterclass. Set aside 30 minutes, go and watch that — you’re going to learn a lot of information from it.

Also, don’t forget to go back and watch previous videos and podcasts just like this. After all, there are 611 of them for you to dig into and learn from.

Free 1 hour live Q&A Webinar.

If you’d like to book a call to have a chat with either myself or one of the team, I’ll put the link here for that as well. You can have a no-obligation 30-minute chat, and we can help you with your trading and show you what we do and how that could potentially help you.

Blueberry Markets as a Forex Broker.

If you’re out there looking for a very good broker, I can highly recommend Blueberry Markets. I’ll put a link to them here. All these trades that you see behind me here were all taken on Blueberry Markets — in terms of that Silver trade, XAG/AUD. They’ve got Silver and Gold against the Australian, the US, the Euro, the Pound, the Chinese Yuan, the Singapore Dollar, and there are probably others that I’ve missed. So lots and lots of opportunities to be very selective and pick the highest quality chart setups. As technical traders, that’s exactly what we need. So Blueberry Markets — I can highly recommend you consider them if you’re out there looking for a good broker.

That’s it for this week. I hope you’ve enjoyed the session and learned all about reversals.

Like, Share and Subscribe

Any questions or comments? Please leave them on this page. And don’t forget to like, subscribe, and share this with anybody who is out there looking to become a good trader. I’ll see you this time next week. Bye for now.

Episode Title: #611: Daily Reversal Pattern That Nailed Profit

Find out more about Blueberry Markets – Click Here

Find out more about my Online Video Forex Course

Book a Call with Andrew or one of his team now

Click Here to Attend my Free Masterclass

Podcast: Play in new window | Download

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