The pivot point reversal is the most confusing reversal signal presented to beginner technical analysts because it occurs so often throughout the bar chart. It is most commonly used as an entry or exit signal and can quite easily form complex derivatives that are quite difficult to pick up. Traders who [...]

There are two main types of island reversals – the simplified island reversals and the cluster (or complex) island reversal. The first type is easy to identify, the second is typically a lot harder to identify because of movement between the first and second gap.
The island reversal is an extremely erratic [...]

The hook reversal is the exact opposite of the Key Reversal in the sense that it a condensation of market action which is represented by an inside day. It is not as severe as the outside day since it is not a widely ranging market move, but it does signify market caution. [...]

The Key Reversal is an even stronger reversal signal than any other because it occurs as an outside day and indicates a very strong swing in control. There is a definitive failure by one side of the market to maintain the current trending position and the large range seen by the [...]

The closing price reversal is seen below and is easily identified by the current periods close falling below the last periods close. This type of reversal is identified by the majority of the market since the current period is below the last periods close. This type of reversal can often be [...]