IMUGENE CHART. TA only, page-10683

Hey @kierancrowe,

You're question, What is the full indication that a reversal has been made.

There are there are more experienced investor/traders on here but here is my two sense.

I'm firstly looking for a sign that the current trend has stopped and a consolidation area has began. This can be seen in few ways but an obvious indication is the shortening of the days range (shorter candles) with lower than averaged volume (buyers and sellers are flat). From a price action perspective this would show indecision in direction from either camp, almost equilibrium. Some use a 30 period MA with the Volume indicator to make the above average volume more obvious to see.

Bull run to then consolidate to break out.


Moving averages bring more confluence to the decision making (SMA, MA, EMA, VWMA etc..). The 'slope or degree' in there angle is another added indication of price beginning to level out, when they flatten and begin to merge close together, this can be seen as an indication to imminent movement to either up or down side (reversal), price doesn't like to sit still (especially a stock like IMU).

Same chart as above but only EMA's are visible. (takes the noise away from a chart)

This can be used on low and high time frames such as 1min/5min chart for intraday trading, 1hr/1day for short term position trading. This is why guys like @slick and @Zior give there opinions on stock with reference to major timeframes like 1min, 5min, 1HR, 1DAY period charts, this gives you perspective from multiple time frames that add confluence to your trade decision.

Currently IMU is on a 45 day candle down trend. An indication for a possible 'reversal' or break out from current trend would be confirmed with a daily close above the trend line or range which has been identified. I look for price close on a daily candle above the range, then a following test upon the previous resistance to become the new support for the reversal trend.

Price action example. note the EMA's 8,20,50


It is not always this straight forward and there's a lot of fundamental changes that can inhibit or supercharge these setups.
I have a lot more to learn but hopefully this sheds some light on what the hell 'reversal indications' are.

This is a very small intro into the topic in question and there are many other areas which individuals seek their own confluence

Revealing my opinions will open me up to public scrutiny, but its all part of learning and this is a TA thread so bang on!

Cheers,
J