Advanced Options Strategies Of A Pro Trader | OVTLYR University Lesson 11
How to Spot When a Trend Is Over
Introduction
Catching a trend is great, but knowing when it’s ending is critical. This lesson shows you how to recognize when momentum is dying, structure is breaking, and it’s time to exit before giving profits back.
1. Recognize When the Move Is Slowing
● Early signs:
○ Green candles lose size.
○ Wicks appear at the top of candles.
○ Price stalls at resistance and fails to break out.
● These signals mean buyers are getting tired.
You're looking for signs of exhaustion, not reversal yet.
2. Understand What Structure Break Looks Like
● In an uptrend:
○ Higher highs and higher lows define the move.
● Trend ends when:
○ Price makes a lower high
○ Then follows with a lower low
● That’s the first real sign that the trend is over.
Structure is your most important signal. Watch it closely.
3. Look for Candle Clues
● Bearish engulfing candle after an extended move
● Shooting star or doji near highs
● Big red candle closing below previous support
These show that sellers are stepping in.
4. Volume Tells the Story
● Rising volume on red candles = distribution.
● Falling volume on green candles = buyer fatigue.
● Spike in volume with no price follow-through = warning.
5. Moving Average Violation
● Price closing below key moving averages (like 10 EMA or 20 EMA)
● Especially when it fails to reclaim them afterward
● This can mark a trend break or deeper pullback
6. Failures to Break Out
● Stock tests a high, then pulls back sharply
● Can signal the top if it happens after a long run
● Watch how the chart behaves after failed breakouts
Multiple failed attempts usually precede a reversal or sideways chop.
7. Exit Before It Gets Obvious
● By the time everyone sees it, you’re late.
● Don’t wait for a full breakdown, exit when your checklist breaks:
○ Structure no longer bullish
○ Candles turning bearish
○ Volume not supporting the move
○ Moving averages lost
Exit on weakness, not collapse.
This wraps up Lesson 11. Now you know exactly what to look for when a trend is losing steam and how to exit before your gains vanish.
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