Key Reversal

A one-day reversal pattern that occurs when a market makes a new high (or low), preferably a spike high (or low), known as an uptrend, and then reverses to close at or near the low (or high), known as a downtrend, of the price bar.  The implication is that the market has experienced an extreme intraday sentiment change and a reversal is likely.

Related Articles:

• Recognize Key Reversal Zones and Cycle Timing Symmetry