REVERSAL SIZE

21 August 2017 By PDSNET

In point and figure charting the number of reverse boxes required (set by the user) to indicate a change in the direction of the trend. So for example, in an upward trend, if the box size is 100c and the user has specified a three-point reversal, the share price would have to fall by at last 300c before a new downward box could be added. The reversal size determines how much of a turn there must be before a new trend is recognised.

Reversal Size
Reversal Size



Share this glossary term: