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Reversal System

Color Key
Color
Item
Meaning
Open
Higher Open & Open Above Close
Open
Higher Open & Open Below Close
Open
Lower Open & Open Above Low
Open
Lower Open & Open Below Low
High
Higher High
High
Lower High
Low
Lower Low
Low
Higher Low
High & Low
Higher High & Lower Low
Close
Higher Close
Close
Lower Close
Close
Lower Close & Closed Below Open
Close
Higher Close & Closed Above Open
Comments
Indicators are slightly bearish
Comments
Three or more indicators are bearish
Comments
Indicators are slightly bullish
Comments
Three or more indicators are bullish
Comments
Projecting a high or low
Comments
Forecasting an important event
Comments
Neutral indicators

About

The Reversal system is a price-based model born through the theory that specific pressure points exist within price movement. If enough pressure builds in either direction, there will eventually be a point which, if exceeded or penetrated, signals a potential change in trend.

 

Think of Reversals as an indicator of those potential pressure points in market price – offering key areas of support and resistance. Reversal points are generated each time a market produces a new isolated high or low, and when a Reversal is breached (“elected”), it could signal a potential change in trend, thus a potential market entry or exit point.

 

Important to remember, while Reversals are generated on an intraday basis (market highs or lows), they can only be elected on a closing basis.

 

We recommend aligning Reversal (price) points with Forecast (timing) Arrays when researching investing or trading strategies.