What is a Reversal?
For any stock, if there’s a change in direction of its price trend, from going up to going down or vice-versa, it is termed as ‘Reversal”. It helps an investor to determine the time for entry or exit in a trade.
How to identify a Reversal in “Cycle”
Cycle helps its users to identify a Reversal at two stages:
- Indication of possible reversal: For a given stock, the app will give a “WAIT” signal under respective time frame (i.e. short, medium or long term) indicating a possible reversal in near future.
- Confirmation of reversal: Users can access “Reversal list” under the “Suggestions” area within the app which is for subscribers only access. This section gives a curated list of stocks under various time frames for both type of reversals:
- “BUY” to “SELL”: implying an exit
- “SELL” to “BUY”: possible entry point