There was a perfect example this week of why a key reversal day, or a key reversal week, can be an important pointer to a change in trend. For those new to technical analysis, this occurs when: • In an uptrend, the price hits a new high but then closes near the previous day’s (or week’s) lows. • In a downtrend, the price hits a new low but then closes near the previous day’s (or week’s) highs. • Ideally, in an uptrend, the price should also open above the previous day’s (or week’s) close. • In a downtrend, the price should open below the previous day’s (or week’s) close. Take a look at the weekly chart below of ... (full story)