One Day Reversal

One day reversal is a signal that is triggered in a bottom pivot or a top pivot. A one day reversal consists of one bar.

A one day reversal in a bottom pivot means that today's closing price is in the upper 20 % of the bar and that the lowest price during the day forms the bottom level in the recoil. A one day reversal in a top pivot means that today's closing price is in the bottom 20 % of the bar and that the highest price during the day represents the top level of the recoil. A stop-loss for a one day reversal is placed on the bar's minimum value at a buy signal and on the bar's maximum value at a sell signal.

A buy signal for a one day reversal in a bottom pivot is given the next day if the highest level in one day reversal bar is passed. A sell signal for a one day reversal in a top pivot is given the next day if the lowest level in the one day reversal bar is passed. When you act on one day reversal signals, decisions are always taken in the direction of the trend. One day reversal signals are triggered in recoils of the dominant trend.