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Novice Traders' Notebook | AUG 2003
Novice Trader’s Notebook by EMS Flynn
Novice Trader’s 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 “nothing more than temporary pauses in the existing trend after which the trend resumes its course.” The one-day reversal occurs at the end of the trend. This pattern can also be seen in a oneweek reversal.
by EMS Flynn
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