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Chart Patterns > Reversal Days > Key Reversal
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Key Reversal

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

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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