Hi, It is really great effort from the creator of these topic and all the other contributors here and also in whole forum.
when everybody start trading binary, His mindset attunes to the concept of taking the trade in the high or low and grew his/her idea how to catch it. in the beginning many of us didn't even know that such concept called reversals.
all over the net there are thousands of reversal strategies and they were always popular not because of their profitability margin but because they aligned with beginners and intermediate traders mindset. But what causes emerging such point of view?
the answer is simple. Our brain
we look at the trend and think will it continue or will it stop. IF we consider continuing of the trend as greed and reversing as the fear then Since fear always exceed the greed our brain automatically gives the signal that trend will end soon.
what helps the brains to support this idea is Image influences. let make it clear with an example.
you just open the chart and what do you see first or what helps you to identify the condition?
how do you keep the images of a chart in your mind?
the answer is Tops and bottoms.
all the terms line lower highs,lower lows, higher highs, higher lows, swing high, swing low, Choppy, trendy and etc has been identified by Tops and bottoms of the movement. In fact top and bottoms are luminous and memorable parts of every chart. So the brain adjusted itself to put more weight on this points.
No put both fear/greed concept and memorable chart points together and the untrained brain instinctively tends to see just reversals.
Some traders finally get this point and teach themselves or reinforce their discipline. some find the balance between their trend following and reversal trades but many will remain on the first pitfall.
that's why everyday they try to produce new indicator with higher and higher extreme to catch it but it just fails and fails. I remember 4,5 years ago bollinger band parameters was 20,2 then become 20,2.5 then 20,3 the RSI OS/OB was 20,80 then 10,90 then 5,95. different oscillators and bands, candle patterns, chart patterns was used and tried but still that reversal holly grail has not been found.
the only thing that you will find in common in all reversal topic is "why did i loose?" and the answers is "It was a waterfall unfortunately :)"
I don't know how to finish this post but I just wanted to make it clear a bit and explain what is the reason that many still believe in reversals.
Hope it helps some new traders and make rethink some senior loser traders.