The reversal levels are a systematic approach to investing and trading that is both effective and easy to use. This method is based on end-of-day data, so you can enter your orders before markets open and don't need to monitor your trades throughout day. This is not a get rich quick method, but it can help you to build your wealth over time.
Reversal levels are not simple moving averages. They are calculated using a proprietary algorithm and are designed to keep us in trending moves for longer periods without getting stopped out too often. In practice, this method rarely misses out on big trending moves, although it can result in losses during periods of choppy sideways trading with fewer trending moves.
A stock is acting bullish as long as it keeps closing above its reversal level, and bearish as long as it considently closes below its reversal level. So the reversal level is used on a "bullish above, bearish below" basis. The reversal levels are recalculated at the end of every day and week, and sent to subscribers before the market opens.
The color codes in the tables indicate the current weekly Trend (Tr) and daily Mode as follows:
* Green: bullish with upward momentum (MoM). The stock is above its reversal level and rising.
* Pale Green: weak bullish with downward momentum (MoM). The stock remains above its reversal level, but is starting to weaken. This can indicate consolidation or the start of a pull back.
* Red: bearish with downward momentum (MoM). The stock is below its reversal level and moving lower.
* Pink: weak bearish with upward momentum (MoM). The stock remains below its reversal level, but is attempting to recover. This can indicate a sideways range or the start of a rebound.
What can you expect in practice?
A standard buy signal occurs when mode changes from red (or pink) to green, and the stock is held as long as the mode stays green (or pale green). That can be for a few days, weeks, or even months, as long as the stock stays above its reversal level. The idea is not to buy any stock that shows in green mode in our tables. A buy (or sell) signal is only triggered when the stock crosses the reversal level (on a closing basis).
The advantage of this method is that it captures almost every major trending move in any stock or index. This is because a stock usually won't start a big upswing without crossing above its reversal level (which triggers a buy signal). The only way a big move might be missed is if a stock jumps overnight (such as in response to takeover news).
The second advantage of this method is that it helps us avoid most major bear markets in a stock or index. This is because a stock usually won't experience a significant decline without crossing below its reversal level (which triggers a sell signal). The only way we could be caught in a big drop is if a stock we own crashes overnight, which can't be ruled out but fortunately doesn't happen very often.
By riding out the big moves while avoiding most major declines, we are increasing our chances of success. However, this comes at a cost.
Sometimes we will experience a series of small losses when a stock is stagnant and not making any trending moves. In these cases, the moves are too small and the method can't lock in any profits. So, you should be prepared for this when using this method of investing. Trading for fewer (but larger) wins always requires a certain level of mental toughness and the patience to wait for favorable periods with trending moves. We keep taking our chances and over time, we are rewarded. Not rarely most of the gains for a year will come in just two or three months.
This standard strategy results in approximately two losses for every win, but the average win is much larger than the average loss. You can check out our weekly and daily tables to see the kind of profits and losses you can expect. We are as transparent as possible with our readers.
Traders who prefer faster action with a higher percentage of winning trades can use our speculative buy signals (spBuy) and trade for the QuickTargets given in the tables. This results in smaller but more frequent wins and can result in up to 70% winning trades if you follow our instructions. The speculative buy signals can also be used to purchase stocks near major bottoms with the goal of holding them for the long term. Our strategy articles provide instructions for this type of "bottom fishing".
Are reversal levels for me?
Generally, this service is for investors and traders who know which stocks they want to own or trade, but are looking for a practical way to improve the timing of their buying and selling. Reversal levels can be used by different types of investors, and we provide strategies for each type. You can find more details about these strategies at http://www.reversallevels.com/p/strategies.html.
We use a "convince yourself" approach instead of spending money on aggressive marketing. The weekly reversal levels are posted on this blog once a month and can be used for longer-term market orientation. Our daily blog post gives the reversal level signals for a small demo portfolio. The best way to see what this method can do for you is to watch our calls and results over a period of time.
Note: If you have a very small account, it may not make sense to pay $200 per year for a subscription. In this case, it's better to trade the free signals we post on this blog until you have a larger account.
Daily reversal levels for more than 3000 stocks and ETFs are available by monthly subscription. Once a month, we provide a free sample of the file that is sent to our subscribers. You can find it at the bottom of this page.
If you have any questions or comments, please post them in the comments section below.
It's not clear what the $1.50 charge is for. A day, week, month or year?ReplyDelete
$1.50 is for one day. Some people want to pick up the daily reversals levels once a week and we give them the chance to do so.
There is also a monthly subscription, which can be found here: https://gum.co/JDpA
would you have any indications of the past performance of your model?
Past results can be fabricated. Even if they are real, there is no guarantee that they can be repeated in the future. So I would never rely on past results that are published on websites.
That's why we make everything transparent. You can see our current results on a daily and weekly basis in the "P/L%" column in the reversal level tables. You can verify the tables we post every day for major indexes and for a selection of popular stocks. That should give you a good idea of how it works in practice.
What is your average return per year? Mine is 20,000% in Q1ReplyDelete
Results achieved with this method will depend on which stocks you chose to trade, which strategy you chose, and how much leverage you use.Delete
The signals for selected stocks are posted every day free, so people can always check the current results whenever they want.
20000% in 1 quarter is only possible with leverage and probably rather concentrated positions with high risk. Anybody who makes 20000% per quarter would rise to the top of Forbes wealthiest person list within a year, even if he starts out with only $1000. But somehow it are Gates and Buffett that keep topping that list year after year and no stock traders are even coming in top 100. Even with "only" 1000% per year one would surpass gates within a few years, but nobody seems to be doing it.
tried to send you an email on this but so far no reply.
I wonder primarily about how important the partial profits are for performance and drawdown, can they be skipped altogether, or are they very important? If so how big a chunk would you recommend unloading when pP happens?
I was on the road today. My answer should be in your mailbox now.
Basically, whether to use the partial profit signals or not depends on investing timeframe (swing trading or long term investing) and on the type of stock you buy.
Will explain this topic in more detail when time permits.
Dear LunaticTrader, I have some questions. There is no problem for me to subscribe (for 1 month) to your system, I like it. May I ask my (I believe simple) questions to understand how can I use the system? Thank you in advanceReplyDelete
Yes, you can always post your questions. Either here, or as a comment to my daily post.
I would even say it is better to ask your questions first and then subscribe later when you understand how to use it in your trading.
Cual es el monto ideal en dolares para abrir cuenta con un broker $? para seguir y contratar tu método de señales.
I would say at least $40,000.
If your account is smaller then you can use the free information we put out.
But subscibers pay about $200 per year. If your account is only $10,000 and you beat the market by 2% then that's the $200 you pay for subscription. So you would have the same result by simply buying and holding $SPY or similar ETF for the year.
Diría al menos $ 40,000.
Si su cuenta es más pequeña, puede usar la información gratuita que publicamos.
Pero los subscriptores pagan alrededor de $ 200 por año. Si su cuenta es solo de $ 10,000 y supera el mercado en un 2%, esos son los $ 200 que paga por la suscripción. Por lo tanto, tendría el mismo resultado simplemente comprando y manteniendo $ SPY o un ETF similar para el año.
What are those numbers in Trend column please?ReplyDelete
The trend column depends on the weekly reversal levels. The number shows how many weeks the given stock has been in a bullish (green) or bearish (red) trend. The age of a trend is an important consideration, for example when there is a partial profits or speculative buy signal.Delete
Danny I'm just wondering if you have any data for the Canadian market?ReplyDelete
A small selection of major TSX listed stocks is included. You can pick up the latest free sample here, just scroll down: https://www.reversallevels.com/p/subscribe.html The Canadian stocks are under the "Intl" tab. I may increase the coverage if more users want Canadian stocks.
I've looked at the bottom of many of the pages but I don't see anything like an International Tab. But I appreciate your response and will follow some stocks based on the daily and weekly posts.Delete
The free samples are only on the subscribe page. They go all the way back to 2015, but the most recent one is 25 December 2020.
So, you can see al the (Canadian) stocks we cover by downloading that free sample and then opening it in a browser. The "Intl" tab is in the file.
Thanks so much. I was missing the download aspect of weekly. Great work.ReplyDelete
why don't u provide ur indicators for a monthly subscription. who wants to trade of a newsletter...ReplyDelete
Can't do everything. Some people want to buy indicators, others trade from a newsletter with the info provided in easy to use tables.Delete
I don't want to spread myself in all kind of directions. So, newsletter format it is.
I have been reading through your website after searching about the moon cycles phases with crypto trading…
I have notice you provide services, do you have crypto stock in your services??
Thanks I’m advance
We cover over 100 crypto currencies and also several stocks in the crypto mining sector.
You can just pick up a free sample of our daily file a little down this page (just save and open in a good browser): https://www.reversallevels.com/p/subscribe.html