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2003issue C081

Constructing one-day reversal tops and bottoms

A one-day reversal is constructed only after a trend is already in place. The session prints a sharp spike, then finishes with a marked move the other way, so the completed bar can be treated as a potential key reversal day rather than a confirmed turn.

  • Confirm the prior trend before treating a single-session spike as a one-day reversal.
  • A one-day reversal top closes near the session low after a rising trend. A one-day reversal bottom closes near the session high after a declining trend.
  • The finished structure is only a potential key reversal day. Many one-day reversals are temporary pauses after which the existing trend continues.
  • The same spike-and-close construction can appear as a one-week reversal on a weekly candlestick.
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Current trackCandlestick patterns100 readings

A one-day reversal is constructed when an instrument already in a trend prints a sharp spike and then reverses, finishing the session with a marked rise or drop. The completed one-day structure is treated as a potential key reversal day and can be built at either a top or a bottom.

Build the bar from a prior trend

Construction starts with that established trend. A single bar with a spike and an opposite close is not a one-day reversal unless the instrument is already trending.

Once the prior trend is in place, the session must print a sharp spike and then reverse, finishing with a marked rise or drop. That single-session sequence is the whole construction.

One-day reversal tops and bottoms

A one-day reversal top is identified in a rising trend by a single-day spike that then falls and closes near the session low.

A one-day reversal bottom is identified in a declining trend by a single-day spike that then rises and closes near the session high.

Read the finished bar as a candidate

The completed one-day structure is treated as a potential key reversal day. The pattern is described as occurring at the end of the trend, but many one-day reversals function only as temporary pauses, after which the existing trend continues.

The same construction can appear as a one-week reversal. In that reading, the spike-and-close is taken from a weekly candlestick instead of a daily bar.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
19 of 54 in the Candlestick patterns track
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All readings on this track · 54 readings
  1. 1990Constructing three-session rally and reaction volume signals
  2. 1991Constructing candlestick real bodies and multi-session patterns
  3. 1991Treat a candlestick reversal as incomplete until %D confirms it
  4. 1991Filtering candlestick signals with stochastic percent-D
  5. 1991Constructing compressed candlestick summaries
  6. 1993Intraday candlestick confirmation with oscillators
  7. 1993Candlestick hypotheses from a 1993 reading list
  8. 1994License candlestick signals with oscillators and weekly vetoes
  9. 1995Real-body support, resistance, and close-through breakouts
  10. 1997Weekly reversal as a three-part hypothesis
  11. 1998Turning fear levels into testable rules with a psychological matrix
  12. 2000Evaluating three-bar reversal reliability
  13. 2000Prior-day candles, open confirmation, and same-session stops
  14. 2000Intraday candlestick volume confirmation for daytrading
  15. 2001Count the key reversal up before coding a mechanical exit
  16. 2001Rising and falling three continuation candle construction
  17. 2002Treat a moving average as a contested fence
  18. 2003Candlestick signals need support and a risk-reward screen
  19. 2003Constructing one-day reversal tops and bottoms
  20. 2003Chart sentiment as a regime filter for hourly stochastic entries
  21. 2004Confirming index reversals with candlesticks, stochastics and averages
  22. 2004The harami inner close as a reversal barometer
  23. 2004Constructing a true-range volume power-shift filter
  24. 2005Weighing reversal clusters against moving-average support
  25. 2005Candlestick exits confirmed by overbought stochastics
  26. 2005Confirming piercing patterns with stochastics and moving averages
  27. 2006Candlestick cluster exits confirmed by overbought stochastics
  28. 2007Three black crows become a trade hypothesis only after regime, trend and nearby levels
  29. 2008Asymmetrical RSI lookbacks for divergence and candle confirmation
  30. 2008A permission checklist for the end of a trend
  31. 2010Mechanical entries still need confirmation gates
  32. 2010Crude oil as a case study in candlestick session reading
  33. 2010Gold weekly candles and the thousand resistance breakout
  34. 2010A three-layer gold chart drill from waves to candle confirmation
  35. 2011Why entry scans fail without trend filters
  36. 2011Price-zone oscillator trend-regime rules
  37. 2011A candlestick checklist before commodity entries
  38. 2013Step candle construction at price turning points
  39. 2013Two-bar step-candle construction
  40. 2014Small-range bars as a timed volume-climax hypothesis
  41. 2014Constructing volume-scaled candlestick charts
  42. 2015Weekly range midpoints as support and resistance
  43. 2015Constructing weekly body-midpoint pattern codes
  44. 2015Evaluating encoded candlestick sequence hypotheses
  45. 2015Constructing a breakout relative-strength index from two-day range candles
  46. 2016A three-gate classroom on hourly sterling
  47. 2016Fibonacci retracement as a pre-commitment stop map
  48. 2017Nine-zone filter for decade-level breakouts
  49. 2017Constructing pin-bar and inside-bar setups
  50. 2017Two-bar soldier and crow rules become a system only after filters and exits
  51. 2017Confirm a one-white-soldier or one-black-crow before entry
  52. 2018Session control from marubozu and engulfing geometry
  53. 2019Volume, acceleration, and candle filters on a completed double bottom
  54. 2019Sector-filtered candlestick scans and predrawn stops
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