And when the Reversal Days occur at important support or resistance levels, the potential can be astronomical. How many times have you looked at a great idea and were amazed at its simplicity. That is what many people say when they learn about the Reversal Day Indicator. The Reversal Day Indicator is a simple concept combined with some old ideas. By looking into the past traders can see into the future.
Lets look at some examples using the Reversal Day Indicator to identify market turns.
In September the market made a short lived correction before another sharp decline into October 8, 1998. On this day the market began a strong rally and made everybody happy again. Five days before this bottom, a Reaction Cycle was confirmed. Let's look at another example. Now, let's look at an example that covers a much longer time scale.