Friday saw a potential reversal bar on the S&P and several stocks.
Our bread and butter is OVI breakouts of trending stocks, and that’s what you should be focusing on 80% of the time.
But the market can’t always be trending nicely for us, and there are times where we do see excellent reversal propositions.
My favourite setup for reversals is the Railroad Tracks, particularly in the context of a trend resumption.
Today though I’m highlighting the Doji bar where the open and close price on the day are very similar. The specific Doji bar I’m highlighting today is the one where the bar itself is longer than normal. This does increase the odds of a reversal. You also want to see a spike in volume.