First of all, I hope you guys had a wonderful Christmas Holiday.

This is the fourth email in our series, "What the Signals Mean."

If you missed the previous three emails you can view them here:

Possible Reversal Signals 1 - Pivot Adjustment Signals

In this email we are going to briefly discuss two types of Possible Reversal Signals.  The important word in the title is "Possible."

These types of signals are meant to make you aware of something going on in the market.  They require confirmation. 

Possible Reversals can be confirmed using the DecisionBar Risk Oscillators, the DecisionBar Bias Bar, Price Movement or any indicator you wish.  Methods of confirmation are discussed in the DecisionBar Trading Manual, but are beyond the scope of this introductory email.

When an upper pivot is adjusted lower (the DecisionBar software has calculated a new, lower resistance level), this is a Bearish occurrence and a short Possible Reversal signal is given.

When a lower pivot is adjusted higher (the DecisionBar software has calculated a new, higher support level), this is a Bullish occurrence and a long Possible Reversal signal is given.

These are easy signals to identify.


This is a screenshot from Metatrader of a daily chart of EUR/USD.  When the upper pivot was adjusted downward a possible reversal signal was generated

Please note that in MetaTrader and TradeStation, Signal are indicated with alpha-numeric symbols instead of arrows due to programming limitations.  In this case the short signal due to a pivot adjustment is indicated by a red "2P" designation. 

Possible Reversal Signals 2 - Reversal at Previous Pivot

When a long Primary Signal is in effect, and the market moves above and back below a previous support OR resistance level, a Short Possible Reversal Signal is generated.

When a short Primary Signal is in effect, and the market moves below and back above a previous support OR resistance level, a Long Possible Reversal Signal is generated.

Note that the software is only looking for pivots.  It makes no difference if the previous pivot was resistance or support.


On this chart I have shut off the Pivot Adjustment signals and turned on Reversal Signals at Previous Pivots.  I have manually extended the previous pivots (yellow dashed lines) and indicated the bars causing the signal to generate.

You can set the software to look back as many pivots as you wish. 

Before I created DecisionBar I had a hard time keeping all this in my head.  This resulted in mistakes, and in trading, mistakes cost money.

When you trade with DecisionBar you can look at the entire chart and read the market like a roadmap.  you don't get bogged down looking for one kind of pattern or another.  DecisionBar does that for you.

If you are ready to become a successful DecisionBar trader, there will never be a better time than right now to get my DecisionBar trading software.

For details and to sign-up, please visit our website at:

Les Schwartz and the Staff at DecisionBar Trading Software.

Phone: 800-228-4256
International : 954-302-7836
Skype: barry.zeitlin