Description
Key reversal is when the share price accelerates in an ascending trend, exceeds the current peak and after a high opening on the next day, the price falls and closes below the previous day’s trading range. In an inclining trend, the share price accelerates downwards, opens even lower on the next day, then the price increases and closes above the previous day’s trading range. Key reversals are characterised by large price fluctuations and high trading volume. Key reversals can be applied in short- and medium-term with high reliability. Key reversals signal trend reversals if the market is observed in weekly intervals.
- Role: Reversal
- Expected trend: Neutral
- Previous tren: Neutral
- Reliability: High
- Pattern: Reversal
Key Reversal Example
