Weekly reversal levels for over 1000 stocks and ETF. Covering stocks from Dow Composite, Nasdaq 100, S&P 500, S&P 400 mid caps and more than 100 ETF. To be used for market orientation and long term investing.
1. Weekly Reversal Levels for February 14, 2015.
Quick intro:
Further instructions are in the final pages of this PDF, here is the quick start info:
Weekly reversal levels can be used for market orientation and long term investing. The color codes indicate the
current Mode of the market:
* Green: bullish with upward momentum (MoM). Market is above its reversal level and climbing higher. Rallying.
* Pale Green: bullish with downward momentum (MoM). Market is above its reversal level and mean reverting
towards it. Sideways pause or correcting.
* Red: bearish with downward momentum (MoM). Market is below its reversal level and heading lower. Declining
* Pink: bearish with upward momentum (MoM). Market is below its reversal level and mean reverting towards it.
Sideways pause or rebounding.
The tables below give the weekly Mode, the weekly reversal level (RevL) and the weekly MoM. You can see how
many weeks have passed since the last standard Buy or Sell signal and the % change since that signal (blue =
profitable and orange = loss).
The action column gives quick info for trading:
* Buy, Sell, weak Buy (wBuy) or weak Sell (wSell) -> regular buy and sell signal based on the reversal level.
* Speculative Buy (spBuy) -> MoM turning up, can give you a great entry point for stocks you want to buy on
weakness.
* Partial profits (pP) -> a chance to take some money off the table. You can always scale back in when the up trend
resumes (see: "Add").
* Add -> this is where you can add to positions.
* Add short (AddSh) -> good opportunity to add or initiate short positions.
* Watch (w) -> stock to watch, very close to reversal level. The reversal level tends to reject prices, which can be
used for special entry techniques (More on that later).
The MoM indicator shows the current "mood" tendency of the stock based on a proprietary formula. It is used to
detect speculative buy opportunities in stocks that have become very oversold.
The buy and sell signals generated by the reversal levels are a "trend following" method. The signals generated by
MoM indicator are a "mean reversal" method. By combining both we have a hybrid system.
Tip: Yellow boxes in the "MoM" or "Weeks" column help you to spot where the action is. These are stocks with
momentum changes or with new buy or sell signals.
Tip2: To find a certain stock quickly you can use the "Find" function in Acrobat Reader. Just click "Ctrl+F" and it will
bring up a little search box. Typing in the name or ticker of the stock you are looking for will locate it in the list.
More details and strategies for use can be found at the end of this PDF. There is also a little FAQ.
Major indexes
2. Weekly Current Mode RevL (W) MoM (W) Weeks P/L % Action
Nasdaq ^IXIC 4893.84 4577.75 ▲ 1.61 16 9.51%
S&P 500 ^SPX 2096.99 1995.50 ▲ 0.88 16 6.83%
Nikkei ^N225 17913.36 16569.91 ▼ 3.28 15 7.06%
FTSE 100 ^FTSE 6873.50 6562.24 ▲ 2.28 3 0.60%
DAX ^DAX 10963.40 9905.87 ▲ 7.31 12 12.77%
20+ Year Tr. Bond ETF TLT 128.19 124.35 ▼ 8.50 55 20.16%
Gold (spot) $XAUUSD 1229.22 1204.27 ▼ 3.05 4 -3.95% w
$EURUSD $EURUSD 1.1382 1.2528 ▼ -9.91 39 -16.85%
Oil (CL) #CL 52.78 70.59 ▲ -9.12 31 -47.46%
Wheat (ZW) #ZW 533.00 573.84 ▼ -2.19 4 0.14%
Dow Jones Composite stocks
Weekly Current Mode RevL (W) MoM (W) Weeks P/L % Action
American Electric Power Co. AEP 57.83 57.40 ▼ 4.89 24 7.77% w
AES Corporation AES 11.86 13.63 ▼ -4.37 5 -7.85%
Alaska Air Group ALK 62.56 54.96 ▼ 8.75 16 24.35% pP
American Express AXP 78.08 89.78 ▼ -4.53 4 -9.69%
Boeing Co. BA 149.73 130.94 ▲ 6.23 7 13.67%
Caterpillar Inc. CAT 85.13 93.37 ▲ -7.21 10 -13.71%
CH Robinson Worldwide CHRW 72.58 68.56 ▼ 0.70 43 27.58%
CenterPoint Energy CNP 21.76 23.67 ▼ -2.71 10 -7.48%
Con-way Inc. CNW 45.26 46.88 ▼ -3.70 5 0.02% w
Cisco Systems, Inc. CSCO 29.43 25.46 ▼ 4.32 14 17.53%
CSX Corp. CSX 36.08 33.68 ▲ -0.52 1 2.24%
Chevron Corporation CVX 112.78 116.65 ▲ -3.66 22 -7.78% w
Dominion Resources D 72.91 76.63 ▼ 3.58 0 0.00% Sell
Delta Air Lines Inc. DAL 44.50 43.36 ▼ 2.77 16 13.00% w
DuPont Co. DD 76.18 70.37 ▲ 3.11 21 6.92%
Walt Disney Co. DIS 104.17 90.56 ▲ 4.91 16 17.75%
Duke Energy DUK 79.84 83.98 ▼ 4.52 0 0.00% Sell
Consolidated Edison ED 63.92 63.51 ▼ 6.50 34 12.44% w
Edison International EIX 62.91 65.56 ▼ 4.45 0 0.00% Sell
Exelon Corporation EXC 33.51 36.57 ▼ -0.03 0 0.00% Sell
Expeditors Intl. of Washington EXPD 45.81 42.65 ▲ 1.19 15 7.31%
FedEx Corporation FDX 176.47 165.21 ▼ 1.72 83 73.15%
FirstEnergy Corp. FE 37.23 36.98 ▼ 4.50 24 8.73% w
3. General Electric GE 25.15 25.43 ▲ -3.93 9 0.56% w
GATX Corp. GMT 60.08 56.69 ▲ -1.82 0 0.00% Buy
Goldman Sachs Group GS 189.00 178.86 ▲ -2.11 0 0.00% Buy
Home Depot, Inc. HD 111.89 95.89 ▲ 6.73 37 39.43%
Intl Business Machines IBM 160.40 167.51 ▲ -4.39 18 -13.53%
Intel Corporation INTC 34.36 34.83 ▼ -0.32 2 3.93% w
JB Hunt Transport Services JBHT 82.88 79.21 ▼ 1.03 16 7.29%
JetBlue Airways JBLU 16.83 13.68 ▼ 8.03 15 46.35%
Johnson & Johnson JNJ 99.62 104.69 ▼ -3.24 3 -2.14%
JPMorgan Chase & Co. JPM 59.67 60.21 ▲ -2.99 4 6.48% w
Kirby Corporation KEX 79.37 98.72 ▲ -8.52 18 -23.26%
Coca Cola Co. KO 41.99 43.08 ▼ -0.99 2 1.89% w
Kansas City Southern KSU 118.12 118.28 ▲ -2.28 4 7.38% w
Landstar System Inc. LSTR 68.62 71.24 ▲ -5.51 5 0.70% w
Southwest Airlines Co. LUV 43.30 36.94 ▼ 7.14 142 395.36%
Matson, Inc. MATX 38.15 31.63 ▼ 6.70 15 35.86%
McDonald's Corp. MCD 95.65 95.92 ▲ -1.81 30 -2.91% w
3M Co. MMM 165.94 153.04 ▼ 5.11 16 12.12%
Merck & Co. Inc. MRK 58.81 58.43 ▼ 1.34 5 -6.80% w
Microsoft MSFT 43.87 46.00 ▼ -3.64 2 8.08%
NextEra Energy, Inc. NEE 103.62 102.41 ▼ 3.91 16 5.48% w
NiSource Inc. NI 42.52 40.60 ▼ 3.48 112 77.68%
Nike Inc. NKE 92.04 89.23 ▼ 0.21 38 20.33% w
Norfolk Southern NSC 109.91 104.20 ▲ -1.88 0 0.00% Buy
PG&E Corp. PCG 54.06 52.13 ▼ 8.31 16 14.66% w
Public Service Enterprise Grou PEG 39.36 41.82 ▼ 2.22 0 0.00% Sell
Pfizer Inc. PFE 34.64 31.00 ▲ 4.28 15 15.85%
Procter & Gamble Co. PG 85.90 88.40 ▼ -0.85 2 1.56%
Ryder System, Inc. R 93.92 85.81 ▲ -0.52 1 4.71%
Southern Company SO 45.88 49.21 ▼ 4.04 0 0.00% Sell
AT&T, Inc. T 34.66 33.43 ▲ -1.14 1 -0.14%
The Travelers Companies TRV 108.00 100.10 ▼ 4.41 26 16.86%
United Continental Holdings UAL 66.23 58.89 ▼ 6.31 16 33.42%
Unitedhealth Group UNH 109.44 96.53 ▼ 8.13 98 94.46%
Union Pacific UNP 122.60 115.84 ▲ 0.96 1 0.88%
United Parcel Service UPS 101.79 106.41 ▼ -2.20 3 0.09%
United Technologies UTX 121.25 111.58 ▲ 5.21 10 8.02%
4. Visa, Inc. V 269.63 243.69 ▼ 4.52 15 11.89%
Verizon Communications VZ 49.31 47.31 ▲ -1.73 1 0.53%
Williams Companies WMB 49.41 49.64 ▲ -5.13 10 0.12% w
Wal-Mart Stores Inc. WMT 85.81 81.84 ▼ 4.74 14 9.17%
Exxon Mobil XOM 93.37 95.85 ▲ -2.42 28 -5.44% w
Nasdaq 100 stocks
Weekly Current Mode RevL (W) MoM (W) Weeks P/L % Action
Apple Inc. AAPL 127.08 102.78 ▲ 4.72 42 56.95%
Adobe Systems Inc. ADBE 76.51 69.71 ▲ 0.90 15 9.41%
Analog Devices Inc. ADI 57.05 52.00 ▼ 2.10 14 13.74%
Automatic Data Processing ADP 88.75 78.40 ▼ 4.99 41 30.81%
Autodesk, Inc. ADSK 60.67 55.64 ▲ -0.90 0 0.00% Buy
Akamai Technologies AKAM 68.77 59.27 ▲ -0.12 0 0.00% Buy
Altera Corp. ALTR 35.66 36.12 ▼ -2.15 4 2.03% w
Alexion Pharmaceuticals ALXN 182.29 187.16 ▼ -1.05 1 2.36% w
Applied Materials AMAT 24.12 22.81 ▼ 1.27 15 8.70%
Amgen Inc. AMGN 153.48 145.55 ▼ -0.14 34 27.18%
Amazon.com Inc. AMZN 381.83 314.66 ▲ 3.41 2 9.08%
Activision Blizzard ATVI 23.11 20.32 ▲ 1.06 1 5.00%
Avago Technologies AVGO 110.15 93.40 ▼ 6.19 16 35.14%
Bed Bath & Beyond BBBY 77.91 69.40 ▼ 5.81 25 20.88%
Baidu, Inc. BIDU 212.13 226.18 ▼ -1.68 1 0.54% w
Biogen Idec Inc. BIIB 391.66 333.96 ▲ 6.23 10 14.70%
Broadcom Corp. BRCM 45.69 40.28 ▲ 2.25 16 15.15%
CA Technologies CA 32.63 29.33 ▲ 3.44 14 8.59%
Celgene Corporation CELG 115.88 103.86 ▼ 5.67 36 43.07%
Cerner Corporation CERN 70.98 61.74 ▲ 5.16 29 25.52%
Check Point Software Techn. CHKP 80.33 74.88 ▼ 3.18 16 10.71%
CH Robinson Worldwide CHRW 72.58 68.56 ▼ 0.70 43 27.58%
Charter Communications CHTR 177.88 154.02 ▲ 1.45 1 3.21%
Comcast Corporation CMCSA 59.47 54.19 ▲ 1.12 1 4.66%
Costco Wholesale COST 147.10 133.56 ▼ 5.41 37 26.99% pP
Cisco Systems, Inc. CSCO 29.43 25.46 ▼ 4.32 14 17.53%
Catamaran CTRX 53.24 48.05 ▼ 3.28 15 12.82%
Cognizant Technology Solutions CTSH 60.23 50.96 ▲ 5.75 15 22.97%
Citrix Systems, Inc. CTXS 64.51 65.40 ▲ -3.22 18 -1.51% w
5. Discovery Communications DISCA 31.45 34.85 ▲ -5.21 22 -22.19%
Discovery Communications DISCK 30.32 34.29 ▲ -5.72 22 -21.69%
Dish Network Corp. DISH 77.20 68.57 ▲ 2.64 13 19.52%
Dollar Tree, Inc. DLTR 76.82 64.45 ▲ 8.13 36 35.10%
DIRECTV, Inc. DTV 87.51 84.83 ▲ 0.17 7 0.86%
eBay Inc. EBAY 56.47 53.16 ▼ 0.70 0 0.00% wBuy
Equinix, Inc. EQIX 227.70 211.82 ▼ 0.87 14 6.66%
Express Scripts Inc. ESRX 84.90 79.41 ▼ 3.21 26 15.98%
Expeditors Intl. of Washington EXPD 45.81 42.65 ▲ 1.19 15 7.31%
Expedia Inc. EXPE 89.49 81.17 ▼ -0.47 0 0.00% wBuy
Fastenal Company FAST 42.50 46.27 ▼ -1.30 2 -4.34%
Facebook, Inc. FB 75.74 72.83 ▼ -0.13 81 122.31% w
F5 Networks, Inc. FFIV 116.64 124.08 ▼ -3.28 3 1.69%
Fiserv, Inc. FISV 78.70 68.42 ▲ 7.19 166 170.91%
Twenty-First Century Fox FOXA 34.72 36.17 ▼ -2.14 5 -2.20% w
Gilead Sciences Inc. GILD 101.90 96.48 ▲ -0.44 3 -3.02% w
Keurig Green Mountain GMCR 118.53 137.10 ▼ -3.71 6 -9.66%
Google Inc. GOOG 549.01 521.87 ▲ -1.01 0 0.00% Buy
Google Inc. GOOGL 551.16 552.06 ▲ -1.49 18 -0.72% w
Garmin Ltd. GRMN 55.93 52.37 ▲ -1.10 0 0.00% Buy
Henry Schein, Inc. HSIC 143.18 131.97 ▼ 6.35 15 19.25%
Illumina Inc. ILMN 198.54 181.02 ▲ 1.99 16 4.58%
Intel Corporation INTC 34.36 34.83 ▼ -0.32 2 3.93% w
Intuit Inc. INTU 90.25 86.33 ▼ -0.75 0 0.00% wBuy
Intuitive Surgical ISRG 510.73 487.85 ▼ 1.19 33 21.19% w
KLA-Tencor KLAC 63.64 70.78 ▼ -5.42 11 -7.86%
Kraft Foods Group KRFT 64.42 61.28 ▼ 8.00 14 11.26% pP
Liberty Global Inc. LBTYA 52.49 46.29 ▲ 1.09 16 16.83%
Linear Technology LLTC 48.38 44.33 ▲ 2.17 11 5.17%
Liberty Capital Group LMCA 37.97 34.46 ▲ 0.16 1 4.00%
Liberty Media C LMCK 38.07 34.35 ▲ 0.84 1 4.50%
Liberty Ventures LVNTA 38.87 35.49 ▲ 1.68 13 8.09%
Marriott International MAR 79.39 69.11 ▼ 2.68 74 84.55%
Mattel Inc. MAT 27.61 31.47 ▼ -5.59 55 -35.17%
Mondelez International MDLZ 36.78 37.15 ▼ -1.07 2 4.37% w
Monster Beverage MNST 117.74 102.56 ▼ 7.16 27 70.02%
Microsoft MSFT 43.87 46.00 ▼ -3.64 2 8.08%
34. Ultimate Software Group ULTI 163.76 143.65 ▲ 1.35 15 8.95%
United Natural Foods UNFI 81.10 73.20 ▼ 5.14 15 18.81%
Unit Corp. UNT 33.26 43.47 ▲ -7.97 22 -46.51%
United Rentals, Inc. URI 92.98 104.15 ▲ -6.17 9 -7.78%
United Therapeutics UTHR 151.11 126.55 ▲ 4.42 24 30.56%
UTi Worldwide Inc. UTIW 12.10 11.05 ▲ 1.30 14 8.42%
Valspar Corp. VAL 86.85 82.21 ▼ 2.23 16 8.77%
Valley National Bancorp VLY 9.70 9.27 ▲ -1.80 0 0.00% Buy
Valmont Industries VMI 124.24 134.91 ▲ -5.63 31 -16.69%
Vishay Intertechnology VSH 14.23 13.39 ▲ -0.89 0 0.00% Buy
Vectren Corporation VVC 44.75 44.59 ▼ 5.08 26 12.61% w
Westinghouse Air Brake Technol WAB 90.53 83.04 ▲ 0.23 15 4.78%
Westamerica Bancorp. WABC 43.59 46.87 ▼ -4.47 9 -6.82%
Washington Federal WAFD 21.13 21.66 ▼ -2.05 5 0.62% w
Webster Financial WBS 34.26 30.57 ▲ 0.92 1 3.47%
WellCare Health Plans WCG 82.32 71.11 ▼ 3.06 15 21.06%
Waste Connections WCN 46.05 46.28 ▲ -4.30 11 -2.42% w
Waddell & Reed Financial WDR 49.94 46.26 ▲ -2.05 0 0.00% Buy
Wendy's Company WEN 10.95 9.06 ▲ 9.54 16 31.45%
Werner Enterprises WERN 31.06 28.05 ▼ 2.51 16 21.00%
Winland Electronics WEX 104.53 105.11 ▲ -4.27 10 -0.54% w
WGL Holdings Inc. WGL 53.17 50.59 ▼ 8.29 26 26.24%
Western Refining WNR 40.81 37.27 ▲ -2.56 0 0.00% Buy
VCA Antech Inc. WOOF 52.74 44.55 ▼ 8.22 38 63.74%
Worthington Industries WOR 31.13 33.56 ▲ -6.19 28 -21.07%
WPX Energy, Inc. WPX 12.60 15.56 ▲ -5.16 18 -32.91%
Westar Energy, Inc. WR 39.41 38.86 ▼ 6.19 17 11.01% w
W.R. Berkley WRB 50.27 48.14 ▼ -1.11 42 16.61%
Weingarten Realty Investors WRI 36.17 34.61 ▼ 4.62 17 9.28% pP
Williams-Sonoma Inc. WSM 82.11 71.48 ▲ 7.01 13 17.94%
Watsco Inc. WSO 116.96 101.35 ▲ 6.60 16 21.27%
Aqua America Inc. WTR 25.85 26.92 ▼ 2.79 0 0.00% Sell
WhiteWave Foods Co. WWAV 38.65 33.62 ▲ -0.89 1 7.69%
Woodward, Inc. WWD 48.59 49.26 ▲ -3.30 9 0.31% w
Cimarex Energy Co. XEC 112.01 118.39 ▲ -2.54 19 -7.49% w
Exelis, Inc. XLS 24.15 17.60 ▲ 6.28 3 35.83%
Alleghany Corp. Y 475.43 440.50 ▲ 1.71 49 17.78%
35. Zebra Technologies ZBRA 90.53 75.14 ▲ 7.19 10 18.74%
Investing approach for weekly reversal levels:
* Conservative investors can go with the normal buy and sell signals only and negate the info about speculative
buys and short selling. This is a trend following method, so you will not buy at the bottom and there will be some
“give-back” at the end of a trend. The aim is to participate in the bulk of a move with a minimum of risk. When you
see an "Add" signal you can increase the position by buying more. This means you build bigger positions in stocks
that are going up.
* Short selling can be done on regular sell signals or on "add to shorts" (AddSh). Short positions are best covered
as soon as you see MoM turn up or on the first regular buy signal (Buy or wBuy) that appears after you went short.
Short selling is not for everybody. Make sure you know what you are doing.
* Speculative buying opportunities appear when MoM starts going up for a stock that has been in bearish(red)
mode for a while. This can allow you to pick up stocks near a major low. But some care needs to be taken. Try to
buy near the recent low, and use a properly positioned stop-loss, e.g. just below the recent low, because not all
those speculative buys will work. Keep losers small and let the profits run. You can take some partial profits when
the stock comes close to its reversal level and let the rest run for a regular buy if the stock breaks out above the
reversal level, which triggers a normal buy signal. Note: struggling companies may never recover, so this method is
best used on ETFs or on stocks of companies that are in good financial shape.
The MoM indicator
The MoM indicator shows market momentum on a numeric scale between +10 and -10. You could compare it to
the Richter scale for earthquakes, or a market thermometer if you want.
Various levels in the MoM indicator correspond to market mood as follows:
* +8 to +10: very optimistic – euphoric
* +5 to +8: optimistic
* +3 to +5 : positive
* -3 to +3: neutral
* -3 to -5: negative
* -8 to -5: pessimistic
* -10 to -8: very pessimistic – depressed
Besides the level itself, we also pay attention to the direction. In a healthy bull market, the MoM will be rising
together with the market. When MoM starts going down in a bull market (green), it is an indication that the market
may have peaked out or has started a sideways pause, and that’s when market mode sets to light green. In a rising
market you will typically find MoM hovering between +3 and +10. Market pullbacks will generally end with MoM
bottoming out in the neutral zone ( -3 to +3) before turning back up. In a declining market you will typically find MoM
hovering between -3 and -10. Market rebounds will generally end with MoM peaking out in the neutral zone ( -3 to
+3) before turning back down.
Q & A
Q: I prefer swing trading and your weekly signals seem to be rather slow. Do you have something faster too?
A: Sure. We also publish daily reversal levels, which are tailored for swing trading. Check it out on the contact
addresses given below.
Q: Where can I find more information about these reversal levels and MoM indicator?
A: You can find more materials here: http://lunatictrader.wordpress.com/key-reversal-levels/. More will be added in
the near future as well as example trades.
Q: I am a fundamental investor, can I do anything with these reversal levels?
36. A: Well, even if you select stocks based on fundamentals it will make a difference *when* you buy (sell) them.
Better timing can make a big difference, even for a long term buy and hold investor. For example if your analysis
shows you that company XYZ is great value, then you can still wait until the reversal levels give a buy signal ( or a
speculative buy) to get in. Just try and see whether it improves your results.
Q: Your predictions for last week didn't work very well. But your table always shows a lot of blue (profits). Why
should I believe this?
A: The reversal levels are not a prediction, they are an approach to trading. All you can do is try it in your own
trading (even paper trading) and see how it works. It will naturally take more than one week to see if a method is
good or not. You are also not required to believe anything. You can verify the "%Ch." numbers if you want. Just
take the Open on the Monday after the buy (sell) signal was given and calculate the change to date. It should
match what you find in the table. If that is not the case, feel welcome to contact us with your question.
Q: A stock I own is already trading below its reversal level, so it will probably turn to bearish mode this week. Do I
need to wait for the next Monday's Open to sell this stock?
A: If going into the close on Friday you see that one of your stocks is almost certain to close below the weekly
reversal level then you can already sell it with a MOC (market on close) order. Sometimes this will give you a
slightly better exit than waiting for next Monday's open.
Q: Do I need to take all buy signals in the list?
A: No. Maybe you don like IBM, or the leveraged and reverse ETF in the list, that's up to you of course. Also,
whenever a buy signal appears we can always check how far the stock is above its reversal level. That gives us an
estimate how much risk is in this trade, because the stock will be sold if it drops and closes below the reversal
level. E.g. it is possible that a stock jumps 20% on good news and is already too far above the reversal level when
the buy signal appears. In that case you can wait until the price comes back to the reversal level to pick it up. So,
that's where you can always use some discretion.
Q: Do I need to take all sell signals for stocks I own? What if I am sure my stock will recover soon?
A: If you intend to use the reversal levels properly, then the answer is: yes, always sell when a stock has closed
below its reversal level. Take the profit (or loss) and move on to the next chance. True, sometimes a stock will
come right back after giving a sell signal, but many more times that doesn't happen and the stock just keeps
sinking for some reason that you may not hear about until weeks later (and maybe 20% lower). Then you will be
happy if you sold on the reversal sell signal. This is a discipline thing. Also remember, if the stock happens to come
right back then it will climb back above its reversal level and give a buy signal again. We can then just buy it right
back. That would costs us a few %, but that's a small price to pay for avoiding big losers. What we try to do is get in
on some big trending moves. We will take small losses on the trades that do not work, and that's the price we pay
to get in on big profitable moves.
Q: Shouldn't we buy more when a stock we own is down, in order to reduce our average cost basis?
A: With this method we do not add to losing positions. Only with the speculative buy signals we can decide in
advance to buy in up to 2 tranches, because we can have several speculative buy signals before a stock finally
gets into bullish Mode. A good strategy is to buy a half position on a speculative buy signal and then buy another
half postion on the next regular Buy signal. That gives us a full position and from then on we trade it normally. The
"Add" signals you see in the tables are always at subsequently higher prices, which is a "doubling up" strategy
(anti-Martingale). So, with reversal levels we do not double down on losers, we just sell them and wait for the next
buy signal. This has the advantage that we don't end up with overly big positions in poorly performing stocks that
may keep going nowhere for weeks or months.
Q: How many winners can I expect with this method?
A: It is better to ask how big the winners will be versus the losers. You may have only 40% winners and still come
out well ahead because the average win is much larger than the average loss. You can see in the table what kind
of winners you can expect. There are always stocks that show 20% or better profits (see "% Ch.") if you had taken
the latest buy signal (or shorted the latest sell). If you stick to buying stocks that are not too far above their reversal