Key Reversal

The key reversal does not occur very often but is very reliable when it does.

Incredible Charts
Free Charting Software Auto-Fit Trendlines
Trend Channels
Linear Regression
Channels
Raff Regression
Channels
Standard Deviation
Channels

After an up-trend:

• The Open must be above yesterday's Close,
• The day must make a new High, and
• The Close must be below yesterday's Low.

After a down-trend:

• The Open must be below yesterday's Close,
• The day must make a new Low, and
• The Close must be above yesterday's High.

Remember:

The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.

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