Key Reversal Day

Key reversal day is a signal that is given in a bottom pivot or a top pivot. A key reversal day in a bottom pivot means that today's lowest share price is lower than the previous day lowest stock price and that today's closing price is higher than the previous day highest stock price.

A key reversal day in a top pivot means that today's highest share price is higher than the previous day highest stock price and that today's closing price is lower than the previous day lowest stock price. Stop-loss for a key reversal day is placed on the bar's lowest value at a buy signal and at the bar's highest value at a sell signal. A buy signal for a key reversal day in bottom pivot is given the next day if the highest level in key reversal day bar are passed.

A sell signal for a key reversal day in top pivot is given the next day if the lowest level in the key reversal day bar is passed. When you act on key reversal day signals, decisions are always taken in the direction with the trend. Key reversal day signals are formed in recoils of the dominant trend.