Traders Toolbox: Reversals Revisited…

post from MarketClub Trader's Blog on 03 November 2009 05:00:00 AM. © MarketClub Trader's Blog

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals — no matter which way the markets move — with objective and unbiased recommendations not available from brokers.

The Trader’s Toolbox posts are just another free resource from MarketClub.

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Image Reactions Within A Downtrend

“Reversals In my opinion, one of the most misused and abused terms in technical analysis is the reversal or key reversal. I often get calls from both new and experienced traders who are excited about a market because it has just posted a ?key reversal.? While the action these traders point to often marks a reversal day, such a day (week or month) by itself actually has little significance. There is research which indicates single period reversals mark a turn only about 50% of the time. Which gives about the same odds of indicating a turn using a coin flip…”

Revisit the Trader’s Toolbox Post: “Reversals” here.

Read The Full Article:
http://club.ino.com:80/trading/2009/11/traders-toolbox-reversals-revisited/