A Method to your Profits
Reversal levels are a systematic approach to investing and trading that is effective and easy to use. It works with end-of-day data, so we don't need to monitor our trades throughout day.
Becoming a more efficient investor is now within your reach. Learn more...
Basic Concept
Reversal levels are used on a "bullish above, bearish below" basis. A stock is acting bullish as long as it keeps closing above its reversal level ("RevL"), and bearish as long as it closes below its reversal level.
There is a daily and a weekly reversal level, which determines the weekly Trend (Tr) and daily Mode as seen in the tables.
• Green: bullish with upward momentum (MoM). The stock is above its reversal level and rising.
• Light Green: weak bullish with downward momentum (MoM). The stock stays above its reversal level, but is hesitating. 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: mild bearish with upward momentum (MoM). The stock stays below its reversal level, but is attempting to recover. This can indicate a sideways pause or the start of a rebound.
In Practice
Here is a typical example table (dd. 22 Oct 2025) with the info we share.
A Buy (or Sell) signal is triggered whenever a stock crosses above (or below) its reversal level (on a closing basis) and is then held as long as mode stays green (or light green).
In the "Days" column you see the age of the current position (since the most recent Buy or Sell signal) for each stock, with the unrealised profit or loss in the next column ("P/L%").
This basic strategy results in approximately two losses for every win, but the average win is much larger than the average loss.
That's what most successful investors aim for: larger wins. It is getting and staying in good trending moves that matters. Check out our daily blog posts to get a realistic idea of the results this method achieves.
Are reversal levels for me?
Our service helps self-directed investors and traders who are good at picking stocks, but often lack a really good entry and exit method. Reversal levels can be used for swing trading, options trading and longer term buy and hold.
We use a "convince yourself" approach instead of spending money on aggressive marketing. Our blog posts with demo portfolio show our market signals since 2015. That's as transparent and fair as we can make it. Once you feel ready for similar exciting profits, just give us a try:
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