V. 21:8 (67): Novice Traderís Notebook by EMS Flynn

V. 21:8 (67): Novice Traderís Notebook by EMS Flynn
Item# \V21\C08\176NOVC.PDF
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Novice Traderís Notebook by EMS Flynn

One-Day Reversals

One-day reversals occur when a tradable instrument in a trend sustains a sharp price spike and then reverses, ending in a marked rise or drop. This formation, which is considered to be a potential key reversal day, can be seen either at a top or a bottom. According to Thomas Bulkowski, many one-day reversals represent ďnothing more than temporary pauses in the existing trend after which the trend resumes its course.Ē The one-day reversal occurs at the end of the trend. This pattern can also be seen in a oneweek reversal.




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