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| Reversal Amount |
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The amount of price movement required to shift a chart to the right. This condition is used on charts that only take into consideration price movement instead of both price and time.
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In the context of point and figure (P&F) charts, the reversal amount is the number of boxes (an X or an O) required to cause a reversal. A reversal would be represented by a movement to the next column and a change of direction. If you increase the reversal amount, you will remove columns corresponding to less significant trends and make it easier to detect long-term trends. In terms of Kagi charts, it is the amount (generally around 4%) needed to change the direction of the vertical lines. |
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