Ask Colin

What do you mean by 'short term reversal signals"?

Short tern bar chart analysis consist of analysis of individual bars rather than analysis of groups of bars, which is longer-term analysis.

So, it follows that there are reversal SIGNALS that appear on charts in short term analysis that are useful guides for traders and quite separate to the reversal PATTERNS that occur in the longer term and are more useful for investors.

Short term bar chart analysi is a major topic in the Securities Institute subject E114 Technical Analysis. This topic deals with all of the common short term reversal signals. This material is on my subscription web site in the Stockwatch articles

I covered the PIVOT Point in my Shares article in the January 2003 issue, which is on my subscription web site. I am going to deal with the rest of them and more besides in Shares Charting Guide No 3, which I am writing at present and which will be published later this year (2003). They were listed in the aforementioned article as follows:

Open Close Reversal

Closing Price Reversal

Hook Reversal

Island Reversal

Pivot Point Reversal