Outside Reversal

Seguici su Facebook
From Traderencyclopedia
Jump to navigation Jump to search

«Many times in life we find a coin given to us by the destiny and we think that this is the only treasure of our life. We end up giving so much value to it, that the destiny - the same one that has given us the coin - will provide to take it back. Who is very afraid to make a decision makes always the wrong decision.» (Paulo Coelho)

The Outside Reversal is a graphic setup suggested by Gann to understand when a trend is changing. An Outside Reversal on a daily “high” is when price break the previous day high, sometimes even by a little bit, and then it suddenly changes its direction and closes under the “low” of the day before triggering bearish market.

This kind of “figure” doesn’t happen frequently, however looking for it is a very good method to understand when a trend is going to change soon. If the price closes on the lows the signal is even more reliable. An Outside Reversal on a daily low works the same, just the other way around.

Outside reversal.jpg
Outside Reversal Day – Mib30 -

It’s important to remember that all the submitted models have a temporal meaning that is strictly related to the type of chart on which the same figures are going to develop.

Vedi anche: