分类:1REV

The first reversal of the day, a type of ORV. 1Rev is the first Reversal setup on the day and it usually means there is already a trend (including a BGU or BGD) on the day.

Bear case: BGU then 1BRBCL

When there is a BGU (larger than a recent day) and the first bar forms a strong reversal bar trying to reverse the gap, it can be considered a 1REV. When there is some doubt as to whether a reversal bar is worth taking, it sometimes helps to see the first five bars of a 1 minute chart. If the 1st five 1 mins bar forms a TBRC or BRMC, it is sign of strong SP, then it is much more worth taking the 1REV below bar 1 than the case if the first five 1 mins bars are form a TR or BBRCH. See more here.

After Initial climactic move

The simplest to read kind of first reversal is^[1][2]:

• a trend move from open consisting entirely of trend bars that penetrates a MSR such as LOY, HOY, COY or EMA (20120315 was both C of prior and EMA) ^[3]
  

  An ideal 1REV
• a good reversal signal. If the reversal signal is weak (for example, it has a large entry side tail or is a bar of the wrong color), it is likely to take out the low and try a second time.

Such a 1REV is often the low of the day and will close near its high so its a good candidate for a day long swing. In practice, if you get a very sharp move (for e.g. b31-35 on 20120315) that looks like an overshoot and gives a decent profit, its a good practice to take some or all off and wait for more price action.