| OCT 1989
Key reversal days by Peter Aan
Key reversal days by Peter Aan Note the differences in this bearish pattern, however. Pattern A requires only a lower close than the previous day and does not require that the previous day's low be penetrated. Pattern B does require such a penetration, but does not require the close to be below the previous day's low . Pattern C requires a close below the low of the previous day. Of course, a simple chart pattern does not necessarily constitute a complete, viable trading system. What I have done in this study is attempt to isolate occurrences of the pattern at points that might become significant tops or bottoms. Therefore, I required that the reversal day be the highest high or lowest low for the most recent n number of days. Other occurrences of the pattern were simply ignored. Because chart traders tend to pay more attention to key reversals at possible tops and bottoms, this should simulate their subjective selection process.
by Peter Aan
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.