Beware Of Standard Reversal Day Definitions

The standard definition of a reversal high day is a day that witnesses a
new high in an upmove and then reverses to close below the preceding day’s
close. Analogously, a reversal low day is a day that witnesses a new low in a
decline and then reverses to close above the preceding day’s close.

…Frequently…an uptrend will witness a number of reversal highs that prove
to be false signals and then fail to register a reversal high near the actual
top. It can be said that reversal high days successfully call 100 out of every
10 highs. In other words, reversal days provide occasionally excellent
signals, but far more frequent false signals.

…I suggest defining a reversal high day as a day that witnesses a new high
in an upmove and then reverses to close below the preceding day’s low. (If
desired, the condition can be made even stronger by requiring that the close
be below the low of the prior two days.)