[00:01] most powerful trend reversal patterns for day trading on the Renco chart. And you can rest assured, there won't be any candlestick patterns or thing anywhere. After all, traditional technical analysis is [00:14] over 130 years old. But here it's different. Here we break away from the conventional, think outside the box, and focus on objective technical analysis. And without further ado, in these three reversal patterns, you'll see flow diffuser, moving [00:29] averages, arum oscillator, exponential moving averages, and parabolic, all applied to the renco chart in a way that almost nobody uses. And now you're going to understand how to organize all of this to give you reversal signals in day trading, [00:43] on the Renco chart. So come with me, man. Pattern one, flow diffuser, and exponential moving averages. Dude, this flow diffuser indicator was created by the Brazilian analyst André Moraes. [00:56] He took the MACD and added one more line to that indicator. In this way, he created the flow diffuser, where these three lines demonstrate short, medium, and long-term flow. And it turns out that this indicator, man, is very useful for [01:12] tracking trend reversals, especially in day trading on a rectangular chart. In this pattern one, man, we're also going to use three moving averages. They are divided by a cubed thread. For anyone unfamiliar with moving averages [01:25] divided by a cubed wire, a card will appear in the upper corner of your screen. It's a class where I teach all of this from scratch. Go ahead, watch it, and then come back here. Signal indicating a reversal from an uptrend to a [01:38] downtrend. In the Renco graph, when the averages cross downwards, we expect the flux diffuser to also cross downwards. If this occurs, we have a signal of a trend reversal from bullish to bearish. And as [01:52] part of your strategy, you'll be able to focus on sales, OK? Signal of a reversal from bearish to bullish. in the cross upwards, we expect the flux diffuser to also cross upwards. [02:06] If this happens, then we have a signal of a trend reversal from downtrend to uptrend. And within your own strategy, man, you'll then be able to look for purchases. Come with me, man, so we can see this in the [02:20] real graph. Just take a look at this, man. That day I was testing my coloring on the chart, rolling it in the reversal pattern one that I just showed you. Notice that the trend was previously upward, the averages [02:33] then crossed downwards, and the flow diffuser followed suit. So we had a reversal from a downtrend to an uptrend within pattern one. And in the case of my strategy, man, I placed my sell order at the high of the [02:47] red lines, because in my color theory, the color red indicates a strong downward movement. In your case, you could place that sell order according to the entry point of your own strategy. In [03:00] using the coloring algorithm pill Trader. And in this test I was doing, man, in a real account, and of course I also did backtesting with a static chart, my idea was to make a maximum of two short trades [03:13] after a trend reversal. Oh Pio, but why short operations? Why didn't you try to ride this trend? Because, honestly, that's simply not my operational profile. I 'm not a trend follower. I can't [03:26] operate like that. I don't like operating like this. My operational profile is to operate with a risk-negative return, short-term target, following the trend and aiming for a high success rate. But of course, man, always respecting [03:39] risk management with daily goals and limits, you know? It's a matter of profile; you need to have the stomach for operating that way, right? with a risk of negative return. the point here. The focus is on reversal pattern one, which worked very well [03:52] in this test I did within my strategy. my P Trader algorithm coloring, wow, it's really simple. All you have to do is [04:04] come here, look, to strategies, then to the strategies store. In the search bar, if you search for "corpio," you 'll find it here: coloring blue button and here, you can choose the plan that best suits you. [04:19] hired my color analysis service, all you have to do is right-click on the chart, and it will insert a color rule. In the search bar, you type " P Trader algorithm" and insert it into your chart. Click on add, then on [04:33] OK. And that's it, that way you'll have my P Trader algorithm coloring rule , okay? We're on the 10R chart on the mini index, man. To access this graph, simply type 10 followed by the letter R. [04:47] Then press the enter key. You will be directed to this 10- rancos chart here on mini ins. When you get to that graph, man, your wicks will most likely be out of wicks, OK? So, the first thing [05:00] you should do when you get to the Renco chart is to right-click on any Renco. Next, you go to the type, then to the candlestick, and that way you'll have wicks in the row. OK? Let's then look at the [05:12] indicators for standard one. So you come here, look, indicators, more indicators, search by average, it will appear for you here, look, moving average. You enter a 17-period moving average , another 34-period moving average, [05:25] and finally a 72-period moving average. Now, dude, search here for diffuser. The flow diffuser will appear for you . You then insert it into a new window. Click OK. Okay, dude, double-click on the first [05:39] 17-period moving average, and change it to exponential with a shift of one. In terms of appearance, you can then use the color green. Click OK. Click OK again. Now double-click on the 34-period moving average. It changes to exponential with a [05:52] use the color red. Finally, we double-clicked on the 72-period exponential moving average with a shift of one. In terms of appearance, we're changing it here, look, the color is yellow. I click OK. For those who don't know, [06:06] here's a quick explanation of why I use the D1 displacement. That's a personal matter. I add a D1 offset to the moving averages because, without this offset, the average moves along with every price change. Now, [06:19] with the D1 shift, the average will only move when a new candle opens, okay? And I prefer it that way. Continuing, man, now here on the flow diffuser, click here first, where it says diffuser. You will [06:32] keep the long average at 55 and the short average at 21. You can change the appearance of the model now . You're going to put it here, look, also in green. Click OK. Now you're going to click where it says DF - here you're going to change the offset to [06:45] one. For the design, you'll use the color red. Click OK. And finally, dude, double-click on DF+ and change it from 89 to 144. Set an offset of one. For the visual aspect, you will use the color yellow. Click OK. [06:59] As I explained to you guys, pattern reversal works like this . First, we expect a crossover to occur between the averages. In this case, there was an upward crossover of the averages. Look, [07:11] the three averages crossed upwards at this point, which I highlight not only with this circle, but also with this arrow. And then we observe the flow diffuser indicator. Notice that the three flux diffuser averages are also [07:24] crossed upwards. Notice that we have the same colors, look, medium green, red and yellow, as well as in the diffuser, medium green, red and yellow. All in the same sequence and crossed upwards. So here, man, [07:36] we have a trend reversal signal , in this case from bearish to from a downtrend, as you can see, the averages cross upwards, the flow diffuser follows, and here we would have a reversal from a [07:50] downtrend to an uptrend. And within your own strategy, you could then look for opportunities to buy in a situation like this, OK? This is a sign of a trend reversal from a downtrend to an uptrend. If we keep observing here, man, we'll [08:02] complements the other. The flow diffuser, at the point I'll highlight with an arrow, even crossed below all the averages, but the moving averages didn't follow. If we were to rely solely on the flow diffuser, we'd be in [08:16] trouble here. So here we wouldn't have a completed trend reversal signal. We would keep watching, watching, and further ahead, yes, we now have a completed trend reversal signal, because [08:28] we had, look, the averages crossing downwards at this point, right? they all crossed downwards at this point here, which I've highlighted with this circle and also with this arrow. Now you see , my friend, that the flow diffuser [08:42] is also showing us a downward trend. It's in the same sequence, look, as the moving averages here. And then the price went away. This is where I performed those two operations that I showed you. So here we would have [08:54] a reversal from an upward trend to a downward trend, okay? So, back here we had a bearish- to-bullish reversal, and up here we had a bullish-to-bearish reversal. So, dude, go to the chart and look for [09:07] all possible reversal signs. See if this would fit into your strategy or not . Here's another example, man. We had a downward trend here , with the moving averages crossing downwards, and prices falling. At this point, the [09:19] averages cross upwards. Can you see that the flow diffuser was also already crossed upwards? So you have confirmation of the bullish. Look, we've had all this upward trend movement here. [09:34] In that case, you could look for purchases that fit within your strategy. Further ahead, man, the averages cross downwards, which I highlight with this circle, man. And the flow diffuser followed suit. Look, the flux diffuser is in the same [09:46] sequence as the moving averages. So, we had confirmation of the trend reversal. And in this case, you could start looking for sales okay? So, here on the Renko chart, place these indicators and start [10:01] testing this trend reversal pattern . See if it makes sense within your own strategy, okay? Pattern two, moving averages of ru and arum oscillator. Dude, in this second pattern, we're going to use two Roul moving averages [10:15] . And for those who don't know, this moving average reacts much faster to price changes than the arithmetic or exponential moving average. We'll also be using or exponential moving average. We'll also be using [10:29] the RU moving average is very fast, to avoid false signals, we use the Arum oscillator indicator to confirm trend reversals. That's because, man, this indicator shows us the strength of the [10:43] upward and downward trends. So, man, if the Arum bars reach the 60 level, we're going to believe in an upward movement. Now, on the other hand, if the Arum bars reach the -60 level, we're going to [10:57] believe in a downward movement, a sign of a reversal from an uptrend to a downtrend. In the Renco chart, when the Ru averages cross downwards, we expect the Arum oscillator to confirm the bullish-to-bearish reversal; that is, [11:12] its bars need to reach the -60 level. If this occurs, we have a signal of a trend reversal from an uptrend to a downtrend. And within your own strategy, you'll be able to look for sales [11:27] signals that indicate a reversal from a downtrend to an uptrend. In the Renco chart, when the RU averages cross upwards, we expect the Arum oscillator to confirm this reversal from a downtrend to an uptrend. This means that [11:41] his bars need to reach the 60 level. If that happens, then we have a reversal signal, from a downtrend to an uptrend. And of course, in that situation, within your own strategy, you can then be [11:56] looking for purchases, okay? Let's look at this now, man, on the actual graph, OK? Dude, we're back here again on the 10- rate chart of the mini-index. Let's come here, look, at indicators, more indicators. And here, dude, you can search for [12:10] And here, dude, you can search for ru HL, OK? The first average will have 144 periods and the second average of RU should have 305 periods. You can now search for the Arum Oscillator indicator. You then insert the Arum [12:25] Oscillator indicator into a new window. Click OK. Double-click the Arum Oscillator indicator. Change the period here to 72. And to finalize the settings for the Arum Oscillator indicator, simply click on a horizontal line. [12:39] Next, bring that horizontal line to the Arum indicator. Double-click on it, go to position and set it to the 60 level. Now take another Arum indicator, double-click on that horizontal line, go to position and set it to -60. [12:54] Finally, dude, double-click on the 144-period average, okay? The moving average of ru changes here, look, to a stronger green, increasing in thickness to two. In the other moving average, you can change, look, to the red color, [13:06] . And as I showed you earlier, the second pattern works like this. Here, look, we've seen a downward trend. You noticed that the averages were crossed downwards, right? Later on, we [13:19] had, look, a crossover of the moving averages, OK? From the average ru at that point. From this point on, we need the Arum oscillator to confirm this reversal, in this case, from a downtrend to an [13:31] uptrend. In other words, we need the bars of the Arum oscillator indicator to reach the 60 level. And that's what the bars of the Arum oscillator indicator did here, look, at this point. From this point on, we have [13:44] confirmation of the trend reversal. Hey man, within our own strategy, we could move on to looking for purchases. Notice that here we've just had a trend reversal. Here the [13:56] averages crossed downwards. At this point, as you can see, the Arum oscillator confirmed this trend reversal, as the Arum bars reached the -60 level here. And from that moment on, man, if within our strategy we [14:10] have any sell signal, well, man, we could be selling, trend reversal by pattern two, OK? And, dude, you'll find examples of reversals and trends here on the Renco chart several times, OK? Regarding this [14:24] second pattern, I mean, notice that here, look, we had the green average crossing above the red average. At this point , look, the Arum oscillator confirmed the upward trend here. It was an upward trend here, man, of 760 [14:38] points. And you don't have to go far to find many other downward trend. At this point, the RU averages crossed upwards. Here, the Arum indicator confirmed the reversal of the upward trend. And look how much [14:52] the price has gone up. Again, more than 700 points in this reversal from a downtrend to an uptrend. And look how important it is for the two indicators to work together. Look here. At this point the averages crossed upwards, [15:04] but the Arum indicator did not confirm the trend reversal. The price didn't go far. Look, he kept banging his head against the wall and did n't get far. In other words, here we did not have confirmation of a trend reversal. Then the averages crossed [15:16] downwards. Right here, look. However, the Aru indicator did not confirm this. They also crossed upwards. Then the Arum indicator confirmed the trend reversal and the price moved away. Look, in this movement the price went up more than 700 [15:28] points, actually more than 800 points. From the moment Arum confirmed the trend reversal, in this case from down to up. Alright, man? Not just more than 800 points, right? If you zoom out properly, look, look how much [15:40] the price went up after this trend reversal that pattern two identified below. Look. So, dude, again, if you liked pattern two, put it on your chart and look here for as many signals as [15:52] possible. Draw your own conclusions, see if this makes sense for your own strategy or not, okay? Pattern three, top fault and bottom fault with the parabolic curve. Dude, anyone who trades using price action knows [16:06] that if the price is rising, breaking highs, and suddenly a new high is formed lower than the previous one, well, that usually indicates a weakness in the uptrend. This is called a top failure. And if the price, after forming [16:21] this lower high than the previous one, falls, breaking the last low, then we have a signal of a reversal from an uptrend to a downtrend, OK? Similarly, my friend, if the price is falling, breaking lows, and [16:35] suddenly a lower low is formed , this usually demonstrates weakness in a downtrend. This is called a bottom fault. So, if after forming a higher low than the previous one, the price [16:50] ends up rising, breaking through the last high, then we have a sign of a trend reversal from downtrend to uptrend. But, man, most people who look for that pattern on the chart are using subjective technical analysis. So they try to [17:05] guess where the fault is at the top and where the fault is at the bottom. And dude, as you know, on this channel we don't do that; we mark the tops and bottoms using the Pilsar method, meaning we use the indicator to plot them. [17:19] Okay, man? So, in this pattern three, we use the indicator to sell and we leave it in its default configuration , OK? We didn't touch anything. Now understand this, man. When the price pushes the parabolic metric system upwards, we [17:32] observe that this is the highest point the price reached while the parabolic metric system was downwards. This highest point is called the summit. And when the price pushes the parabolic curve down, we wonder what the lowest point was that [17:46] the price reached while the parabolic curve was passing overhead. And this lowest point is called the bottom. And so on , man. We mark the highs and lows in this way and realize that in this movement we have [17:58] an upward trend, with ascending highs and lows . And when we notice a flaw at the top of this uptrend, we expect the last low to be broken. If that happens, then we have , man, a sign of a [18:13] downtrend. And within your own strategy, you might be looking for sales, OK? And dude, just one additional thing. If you don't know how to use the parabolic antenna the way I'm showing you here, I've included a video in the card above [18:27] this one that will explain everything in detail, OK? Watch it there and , notice that in this other movement we have a downward trend , with descending highs and lows. When we notice a flaw at the [18:42] bottom of this downtrend, we will then wait for the last peak to be broken. If this occurs, then we have a signal of a reversal from a downtrend to an uptrend. And within your own strategy, you [18:55] 'll be able to look for purchases, OK? Now that you understand all of that, we can go to the actual chart and look for that pattern three, see? Let's go. OK, man. Let's look at standard chart three now, shall we? So you come [19:08] indicators, search for the parabolic SAR, select the parabolic SAR, and insert your chart. Okay, this is the only indicator we're going to use in pattern three. And listen, this pattern isn't recommended for people who lack [19:21] patience, okay? Because you have to wait for a failure at the top or a failure at the bottom, like in this trading session, for example. Notice that we've had a strong upward trend here. You see, man? [19:33] We've had this whole upward trend here. Further on, look, we then had the famous failure at the top, because the price fell, it formed for us here, look, a lower high than the previous one, right? And it broke through the last [19:47] bottom. So you need patience to wait for that kind of reversal, man. this whole upward trend up here. We had a failure at the summit, as this summit was lower than the previous summit. And then, after the price breaks through this bottom, [20:02] from here on, within our own strategy, we could be looking for sell opportunities in this whole movement. We then had a downtrend, man, that lasted, look, around 500 points here in the [20:14] here, after this trend reversal, OK? In this case, from an upward trend to a downward trend. Let's take a quick look, then, at the previous trading session to see if we can find another trend reversal signal. I [20:28] understand that, yes. Look, man, we've been in a downtrend since the start of the previous trading session. Look, the tops and bottoms are descending, as you can see. And at this point, man, you realize that we had a failure at the bottom, because [20:42] as we saw from a downtrend, and this bottom here, look, was higher than the previous bottom, and the price then broke through this last high, it means that we had here, man, a reversal from a downtrend to an [20:55] uptrend. So, it's pretty clear here. Look, this low was higher than the previous low. This is a fundamental flaw. And when the price broke through that high, we upward trend movement here. Look, the price has gone up quite a bit. It was a [21:08] the price has gone up quite a bit. It was a movement of almost 700 points since the trend reversal. So, man, you need to be patient to find this kind of pattern in the chart. But when you find, like [21:21] again, when you find this bottom, failure at the top, it usually works very well. Finally, let's look at the trading session before the one I just showed you, to see if [21:34] we had any failures at the top or at the bottom. I notice a flaw at the top here. We had an upward trend here, man, because that last high had been broken, so the trend was upward. The price falls, [21:46] missing the previous high. Look, it leaves a lower high than the previous high and breaks through the bottom. And since that breakout here, man, look, the price has dropped quite a bit. As you can see, we've had a trend reversal [21:58] of over 1000 points here. Look, that was until there was another trend reversal. Look, we had the descending tops and bottoms here, right, of the downtrend, obviously. Later on , man, we had this glitch in the [22:12] background here. Look, you can see that the price was breaking through lows, and then the price went up. As it fell again, it left that low higher than the previous low and broke through, lo and behold, the previous high. So here, folks, at this point that I'm going to [22:26] highlight for you now, in green, we had a trend reversal from down to up. Up there, look, we had a reversal from bullish to bearish, and here we had a reversal from bearish to bullish. From the moment the [22:40] price made a lower low than the previous low and broke through the last high, . So, in this trading session, we had a downward reversal of more than 1000 points and then we had an upward reversal, also of more than 1000 points. [22:54] trend reversal pattern number three. Place the parabola on the graph. Watch the lesson where I explain how to mark tops and bottoms using the parabolic chart, then come here and test it out, man. See if this makes sense for your strategy, okay? Okay. Dude, what [23:08] I showed you here are three trend reversal signals on the Renco chart that you can incorporate into your trading strategy. You can and should backtest your strategy to find out if it works for you. [23:21] Draw your own conclusions, OK? But of course, if you'd like a ready-made strategy that captures both trend continuation and sometimes trend reversals, I'd like to invite you to [23:33] participate in the free Pilsardes strategy training. This training program was one I did in partnership with the brokerage firm Tour Investimentos. And that strategy worked very well, especially last month. And now that we [23:45] 're starting a new month, wow , this might be the best time for you to start with this strategy. Just click on the link in the description and also in the first pinned comment. But listen, only click on this link [23:58] if you are truly committed, not only to studying the content, but also to applying everything you learn in this free training in a professional manner, okay? So that's it, man. These were my top three [24:12] reversal and trend patterns on the Renco chart. I completely strayed from the conventional in this lesson so as not to give you more of the same. None of that clichéd, classic technical analysis stuff that everyone's already tired of hearing. My mission on this [24:24] channel, man, is to bring something different that actually makes sense in practice, in an objective way. Hey man, if this lesson helped you in any way, leave a notifications turned on, because I'm not going to rest until you become a [24:38] successful trader. I'll be staying here, man, and see you in the next video. find the secret video for the Pilsar 10 strategy training. It's a training program [24:52] created in partnership with the brokerage firm Touro Investimentos for those who like Price five-lesson training, I delve into my favorite indicator, the parabolic SAR. I'll show you how it can be a powerful tool when used in conjunction with Price Action. And [25:07] just one detail, man, the Pilsar 10 strategy has had an 89% success rate over the last 18 months. So, if you want to delve deeper into the Pilsar method, where I combine [25:19] Price Action with the Parabolic indicator for free, the link to the secret video is in the description of this video and also in the first pinned comment.