Exiting on a reversal signal

How to exit when a reversal signal confirms a trend direction change.

Another way in which a TrendMaster trade can be exited is by exiting when a reversal signal occurs. This means that if you're currently in a long trade you will wait for a short signal (red candle) to appear. If the low of that red candle is broken it means that the trend reversal is confirmed and you should exit a trade. One way you can do this by putting a stop-limit sell order on the wick of the red candle after is has closed. If trend manages to reverse and not dip below the red signal candle you will still be in the trade.

Exiting when a candle of the opposite colour is broken.