Reversal Day

Reversal day is a technical signal that is generated in a bottom pivot or a top pivot. A reversal day in a bottom pivot means that the lowest share price today is lower than lowest share price yesterday and that today's closing price is higher than the previous day's closing price.

A reversal day in a top pivot means that today's highest share price is higher than the previous day's highest share price and that today's closing price is lower than the previous day's closing price. The stop-loss for a reversal day are placed at the minimum bar value when there is a buy signal and a the bar's maximum value when there is a sell signal. A buy signal for a reversal day in a bottom pivot is given the next day if the highest level in the reversal day bar is passed.

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