Reversal levels

Reversal levels were introduced in the blog in 2013 and initially used alongside the lunar cycles to filter out the more favorable entries. They have evolved into a complete system with its own home at

The method has continued to work well in the challenging market environment since 2013 and if you are a self-directed trader looking to improve results then check it out or follow us on Twitter. If you are looking for a way to get rich quick then reversal levels will not be for you. As the saying goes: good investing is boring.

Some older introductory posts about the reversal levels:


  1. Hi Danny, could you say something about the performance of the weekly macro reversals (indexes, gold, oil etc) vs the daily ones over the longer term, and also how the drawdown differs over time between the two?

    Appreciate your work!!


  2. Hi,

    The reversal levels you mentioned are quite accurate, but I could not understand where is the target to stop buy or sell. Would you please explain it for me, so I can better understand this system.


    1. Hi Kashif,

      A buy signal is triggered when a stock closes above its reversal level. There is no profit target or stop-loss target. The trades are open ended until the stock closes below its reversal level, which triggers a sell signal that we use to get out on the open of the next day. Then we wait until the stock closes back above its reversal level, which gives us the next buy signal.


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