The ZoneTraderPro Reversal Trade
The ZoneTraderPro Reversal trade is a low risk high reward trade. In a typical reversal a trend trade will trade to the opposing intermediate zone and the market will reverse.
The next important point of this setup comes from trading statistics. The statistics basically say that the deeper the market trades through the trend trade, the less likely it is that the trend trade can succeed. The market traded 5 ticks through the long trend trade.
Price then trades to the red intermediate resistance zone, where the Reversal trade is indicated. Normally you would look to take profit at the blue counter trend zone, because 50% the price will not trade through that area. However as prices reaches the area, you see a Tick Divergence trading signal in red. This means at that bar, the signal is no longer valid (No disappearing signals) and the $TICK is now exceeding the previous low.
While it may be a good setup on the tick chart, what makes it a great trade is the order flow indicators seen below. This is what putting all of the tools in the toolkit together looks like.
Same signal, same day, and within 1 hour of the above picture. Same result.
Note in the order flow chart below that the top is again by a POC Signal.