Educational Publication | Point of Reversal
🔹 What is the Point of Reversal?
It is the peak that formed the lowest trough in the downward direction.
And the opposite in the upward direction, the trough that formed the highest peak in the upward direction.
🔹 Benefit of the Point of Reversal
If the price rises and closes above it and stabilizes, it may be a signal for a reversal in the downward trend.
And the opposite in the upward trend.
🔹 How does the Point of Reversal move?
If the price does not rise above the Point of Reversal and forms a new trough lower than the previous one, the Point of Reversal moves to the peak that formed that trough in the wave.
And the opposite in the upward trend, it moves to the trough that formed the highest peak.
🔹 Conditions for the Point of Reversal
It is required that the trend is downward or upward, and sloping at a clear angle.
🔹 Can trades be taken from it?
Yes, but this is done within certain trading strategies.
Currently, its purpose is monitoring and determining the trend.
