Hook Reversal

The hook reversal has the same bar as the Open-Close and Closing Price reversals, but it is positioned differently in relation to the range of the previous day.

After an up-trend:

• The Open must be near the High,
• The Close must be near the Low, and
• There is a lower High and higher Low compared to the previous day.

After a down-trend:

• The Open must be near the Low,
• The Close must be near the High, and
• There is a lower High and higher Low compared to the previous day.

Remember:

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