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.