Key Reversal Days

There’s been a trend developing inside the intermediate-term neutral range where we’re seeing key reversal days, followed by a pullback day, and a follow-through confirmation day. This is a reversal 1-2-3 system. Typically, reversals and pullbacks should hold the initial low, but the follow-through day is the most important day. After the follow-through day, there is usually a continuation day or a series of days.

Let’s take a look at the example of pullbacks sandwiched between initial and follow-through days given inside the range:

SPY28 Key Reversal Days

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