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Dale Pinkert—veteran FX voice, mentor, and longtime market interviewer—sits down on the Desire To Trade podcast to unpack how he actually trades reversals and teaches them. He’s known for turning RSI into a “real simple indicator,” pairing it with the classic three-drive pattern, and leaning on team-based, social trading to spot the most compelling setups. If you’ve ever wondered how a reversal trader times entries without getting steamrolled, Dale Pinkert’s playbook is a masterclass in patience, structure, and execution.
In this piece, you’ll learn how Dale reads momentum confirmations vs. divergences, aligns multiple timeframes before pulling the trigger, and scales in/out with partial profits so a single decision doesn’t make or break the day. We’ll cover his views on stop-hunts, weekly close “reversal tells,” risk realism (trade small, avoid overleverage), and the mindset that keeps traders consistent—planning trades on quiet weekends, reacting to the reaction on data releases, and accepting that sometimes the highest-edge move is to wait. By the end, you’ll have a simple, actionable framework to time reversals with more confidence and less stress—straight from Dale Pinkert.
Dale Pinkert Playbook & Strategy: How He Actually Trades
How he frames the market (momentum, structure, and context)
Before looking for entries, Dale wants a read on who’s in control and where momentum is tiring. He keeps the chart clean, focuses on swings, and uses momentum to confirm or fade moves at key locations. The goal is simple: find points where the crowd is extended and a reversal has an edge.
- Mark the prior week’s high/low and the most recent swing high/low; trade around those reference points.
- Use RSI as a “real simple indicator”: above 60 = bulls have it; below 40 = bears; 40–60 = chop.
- Note RSI divergences only at meaningful levels (prior highs/lows, weekly levels, or big fibs).
- Prefer three-touch/three-drive pushes into levels; each push with weakening momentum is better.
- Avoid fresh breakouts without a retest or momentum confirmation—let price prove it first.
Set-up selection: the reversal sweet spot
He hunts for exhaustion into known levels, not random fade attempts. When price presses into a level with diminishing momentum and a clear “three-drive” look, he’s interested. If that push also tags a prior weekly reference, the odds improve.
- Bullish reversal: price makes a lower low into support while RSI makes a higher low (bull div).
- Bearish reversal: price makes a higher high into resistance while RSI makes a lower high (bear div).
- Three-drive pattern: three consecutive pushes into the same supply/demand zone; the third is the candidate.
- Favor levels formed by confluence: prior high/low + 61.8%/78.6% fib + round number.
- Skip countertrend trades if higher timeframe momentum is accelerating in the same direction.
Multi-timeframe alignment that prevents dumb fades
He checks higher timeframes first to avoid fading freight trains. Then he drops to a tactical chart for timing. Higher timeframe context sets the bias; lower timeframe supplies the trigger.
- Define bias on the daily/4H using swing structure and RSI regime (above 60 or below 40).
- Only take reversal attempts on the lower timeframe (1H/15m) that align with the higher-timeframe level.
- If daily is trending hard, require stronger evidence (double divergence or failed breakout) before fading.
- No alignment = no trade, even if the intraday trigger looks pretty.
- Upgrade setups when both daily and 4H show the same divergence at the same level.
Entry triggers that keep risk tight
He wants the market to blink first. Instead of trying to nail tops/bottoms, he looks for a small failure that flips risk/reward in his favor. Triggers are simple and repeatable.
- For shorts: wait for a failed breakout (wick above resistance) and then enter on the first lower high.
- For longs: wait for a stop-run through support that snaps back; enter on the first higher low.
- Candles matter: long upper wick into resistance or long lower wick into support is your “tell.”
- Enter only if you can hide a stop beyond the failed level with ≤1R distance to the invalidation.
- If price rips without you, let it go; chasing kills the math.
Risk sizing that survives losing streaks
Dale treats risk like ammo—never blow the clip on one opinion. He sizes small, aims for many base hits, and avoids the fantasy of “one trade to rule them all.”
- Risk 0.25%–0.75% per trade; cap daily risk at ~1.5% and weekly at ~3% (adjust to account size).
- If taking multiple correlated trades (e.g., USD pairs), aggregate risk must still be within your cap.
- First scale-out at +1R to pay for the attempt; move stop to breakeven only if structure confirms.
- After two consecutive losses on the same idea, stop trading that idea for the session.
- Reduce size by 50% after a red day; earn full size back with two green days.
Trade management: scaling like a pro
The edge is in managing the middle, not picking extremes. He takes partials, trails behind market structure, and lets runners work only when the market cooperates.
- Take 1/3 off at +1R, another 1/3 at a prior structure pivot, and let 1/3 trail.
- Trail stops one swing behind (higher lows for longs, lower highs for shorts); no indicator trails needed.
- If price returns to your entry after the first scale, consider exiting the remainder—momentum likely stalled.
- Add only on clean pullbacks that respect your initial reversal level; never add into heat.
- Into major news or the weekly close, tighten stops or flatten runners—protect realized gains.
Weekly and session “tells” he respects
Closely tell the truth. He watches how the week and session finish to judge whether a reversal is sticking or stalling. This protects him from overstaying a view.
- Bullish weekly tell: downside probe that closes back above prior week’s low = failed breakdown.
- Bearish weekly tell: upside probe that closes back below prior week’s high = failed breakout.
- London/NY session flips: if your reversal is real, it should hold structure through the next session open.
- If a strong reversal can’t survive the next session’s liquidity, take profits and reassess.
- Don’t initiate fresh fades late Friday; use the close to mark levels for next week’s plans.
Event risk and stop-hunt awareness
Catalysts can supercharge or invalidate reversals. He treats news as volatility windows where stop-runs are common—and potentially tradeable—if structure and momentum agree.
- If fading into a scheduled event, cut the size in half or wait until 5–15 minutes after the release.
- Classic play: stop-run through a level on the release, immediate snap back, then structure-based entry.
- Never widen stops “because of news”; either predefine the risk or stand aside.
- If a catalyst launches a trend in your direction, switch from fade mode to trend-following management.
- Track the first reaction and the “reaction to the reaction”; the second is usually the real move.
Playbook checklist before every click
Consistency beats brilliance. He runs a short checklist so the process drives decisions, not impulse. If any item fails, the trade waits.
- Higher timeframe level identified and marked.
- Momentum read aligns (RSI regime + divergence at the level of fading).
- Trigger candle/structure present (failed breakout/breakdown, first LH/HL).
- Stop placement clear and ≤1R to invalidation; size computed.
- Targets and scale plan written (at least two profit takers + trail plan).
Journaling and team signals
He believes in learning out loud. Whether you trade solo or with peers, capture the idea, the trigger, and the outcome so patterns—good and bad—become obvious.
- Screenshot the level pre-trade, at entry, and at first/second scale; annotate why you acted.
- Tag each trade: “reversal-div,” “three-drive,” “failed-break,” etc., to track which setups pay.
- Review losers weekly: was the level weak, the divergence shallow, or the higher timeframe against you?
- Share one chart a day with peers or your future self (journal)—accountability sharpens execution.
- Promote what works: keep the size small on experiments; reserve full size for your top two tagged setups.
Size risk is small, protect ammo, survive losing streaks with discipline
Dale Pinkert hammers this first: trade smaller than your ego thinks you should. When streaks happen—and they will—a small risk keeps you in the game and your head clear. Think of your capital like ammo; you can’t win the campaign if you blow the clip on one skirmish. A tiny position with a crisp invalidation beats a big one built on hope.
Small risk also fixes your psychology before it breaks your account. You’ll execute cleaner, respect stops faster, and bounce back after red days without revenge-trading. Cap your daily and weekly damage so any single session is just a paper cut, not surgery. The goal isn’t to look brave—it’s to stay solvent long enough for your edge to pay.
Use RSI regimes and divergences to time reversal entries confidently
Dale Pinkert treats RSI like a traffic light, not a crystal ball. Above 60, he assumes buyers have control; below 40, sellers do. In between is chop, where patience beats prediction. He only cares about divergences at meaningful levels—prior highs/lows, weekly references, or big fibs—so signals aren’t taken in the middle of nowhere.
When price makes a fresh high but RSI can’t confirm, Dale Pinkert prepares for a failed breakout instead of chasing. He waits for the market to blink—a weak rejection or first lower high—then acts with a tight stop beyond the level. For longs, a stop-run through support with RSI printing a higher low is his green light. It’s simple: let momentum confirm the turn, then trade the structure, not the hope.
Align daily and intraday charts before fading aggressive moves
Dale Pinkert starts with the daily or 4H to decide who owns the tape, then zooms in for timing. If the higher timeframe is trending hard, he won’t fade without extra evidence—think double divergence or a failed breakout that snaps back. This top-down read filters out impulse fades that fight momentum for no reason.
On the trigger chart, Dale Pinkert wants the reversal signal to occur right at the higher-timeframe level. A wick rejection, first lower high for shorts (or higher low for longs), and a stop you can hide just beyond structure—that’s the combo. If the intraday picture looks great but the daily disagrees, he passes. Alignment means the big map and the street view tell the same story before he risks a dollar.
Scale out at one-to-one, trail behind structure, never chase
Dale Pinkert banks a win early to protect the attempt, taking the first slice off around one-to-one so the trade can breathe. Locking that first payoff reduces pressure, keeps emotion out, and lets him judge the tape objectively. After that, he stops thinking in dollars and starts thinking in swing points, trailing behind higher lows for longs or lower highs for shorts. If price gives back the structure, he’s out—no heroics, no “it’ll come back.”
Dale Pinkert won’t chase a move that already ran to his next target; he’d rather let it pull back to structure and re-qualify. He adds only on clean, respectful pullbacks that keep the reversal thesis intact. If price revisits entry after the first scale, he tightens up or exits because momentum likely stalled. Into events or late-week sessions, he tightens the trail further—protecting realized gains beats hunting extra pennies.
Favor three-drive pushes into confluence levels for high-probability turns.
Dale Pinkert looks for markets that grind into a zone three times, each push with less momentum and more hesitation. The third drive, hitting confluence—prior high/low, a key fib like 61.8% or 78.6%, and a round number—sets up the turn with cleaner risk. He wants a “tell” on that third touch: a failed breakout/breakdown or an obvious wick rejection that lets him tuck the stop just beyond structure.
When the third drive fires, Dale Pinkert doesn’t chase; he enters on the first pullback that respects the level. If the confluence breaks decisively, he aborts quickly—no arguing with price. But if the zone holds and momentum flips, he scales out methodically and trails behind fresh swing points. Three drives into confluence isn’t magic—it’s a repeatable way to get asymmetric risk when the crowd is stretched.
In the end, Dale Pinkert’s playbook is refreshingly simple: frame the market, read momentum honestly, and wait for the crowd to overextend. He treats RSI as a regime and a tell, not a magic trick—above 60 he respects buyers, below 40 he respects sellers, and divergences matter only at meaningful levels. The reversal he wants is usually the third push into a confluence zone, confirmed by a wick rejection or a failed breakout/breakdown, then timed on a lower-timeframe first higher low or lower high. All of it sits inside a top-down map: daily or 4H for bias, intraday for the trigger, and session or weekly closes as the final truth about whether the turn is real.
Equally important is how Dale Pinkert manages himself. He sizes small so a streak can’t bury him, scales some off around one-to-one to pay for the attempt, and trails behind structure so runners earn their keep. He cuts experiments fast when higher timeframes disagree, respects catalysts as stop-run factories, and refuses to chase when price sprints without him. The checklist mentality—level, momentum, read, trigger, stop, targets—keeps decisions mechanical and repeatable. Put together, the lesson is clear: trade the level and the structure, not the hope; protect ammo, not opinions; and let the market confirm before you act.
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