Reversal Amount

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Dictionary Says

Definition of 'Reversal Amount'

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.
Investopedia Says

Investopedia explains 'Reversal Amount'

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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'Reversal Amount'

  • A Look At Kagi Charts

    http://www.investopedia.com/articles/trading/07/kagi_chart.asp
    ... The line will not change directions until the price moves above the bottom of the
    kagi line by more than a preset reversal amount, which is usually set at 4 ...

  • The Seven-Day Extension Fade

    http://www.investopedia.com/articles/forex/08/seven-day-fade.asp
    ... We immediately place our first target exit order at entry plus the amount risked,
    or 0.6756. The reversal occurs on the second day and our exit order is ...

  • Using Double Tops And Double Bottoms In Currency Trading

    http://www.investopedia.com/articles/forex/05/PriceMemory.asp
    ... of a runaway market should you be wrong in your assumption that a reversal is just ...
    room for price to bounce, without exposing you to an excessive amount of risk ...

  • The 5-Minute Forex "Momo" Trade

    http://www.investopedia.com/articles/forex/08/five-minute-momo.asp
    ... Momo Trade is an extremely powerful strategy to capture momentum-based reversal
    moves. ... Our first target is the entry price minus the amount risked or 1.5711 ...

  • Analyzing Chart Patterns: Why Charts? | Investopedia

    http://www.investopedia.com/university/charts/charts1.asp
    ... A single chart has the ability to display a significant amount of information ... two
    types of patterns in this area of technical analysis: reversal and continuation ...

  • How To Use The Forex Pure Fade Trade

    http://www.investopedia.com/articles/forex/08/pure-fade-trade.asp
    ... pair has hit its extreme point at the moment and is moving into reversal phase ... The
    first target for half of the position is the amount risked; move the stop to ...

  • Using Options Tools To Trade Foreign-Exchange Spot

    http://www.investopedia.com/articles/optioninvestor/05/022305.asp
    ... thus he or she loses money on the hedges, in theory the exact same amount earned
    in ... A risk reversal consists of a pair of options, a call and a put, on the ...

  • Technical Analysis: Conclusion | Investopedia

    http://www.investopedia.com/university/technical/techanalysis11.asp
    ... term reversal pattern that signals a shift from a downward trend to an upward trend.
    A moving average is the average price of a security over a set amount of ...

  • Analyzing Chart Patterns: Gaps | Investopedia

    http://www.investopedia.com/university/charts/charts8.asp
    ... large move in the trend, the gap should be marked with a large amount of volume ... Because
    the exhaustion gap signals a trend reversal, the gap is expected to fill ...

  • Exploring Oscillators and Indicators: Aroon Indicator ...

    http://www.investopedia.com/university/indicator_oscillator/ind_osc5.asp
    ... The Aroon-down line, on the other hand, measures the amount of time since the ... As
    you can see from the chart above, trend reversal signals are given when the ...

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