One of the reasons 1Rev has been hard to explain is that its really a composite of various kinds of setups that happen to reverse at the high or low of the day during the first hour. Some days have more than one kind of 1Rev, leading to multiple labels on the chart. To make it easier to explain, Im splitting it into simpler components, hoping this would easier to explain and adopt.
The first kind of 1Rev is actually a fBO of the opening range. If the fBO produces a decent signal and the range is sufficiently large (say 4 points) then it should be tradeable for at least a scalp. This is best labeled as fBO instead of 1Rev.
The second kind of 1Rev is a reversal of the HLC of the prior day. Normally a such a reversal usually seeks the one of the prior day's extremes. This should probably be called Opening reversal (OR).
The third kind of 1Rev is a pullback from a gap to the ema and reversal. This can act like an A2 and is usually a high probability setup.
The last kind of 1Rev is a trend move from the open that violently reverses (b7,8). The last two are high probability high or low of the day and can lead to swing till end of day (as today did).
The first should simply be labeled fBO. The second can be labeled OR. The third and the fourth are traded similarly and should probably be labeled XOD (extreme of day).
I will move to the new nomenclature and avoid using 1Rev as a label. When more than one kind of 1Rev occurs, I may simply put 1Rev for brevity but will try to put the individual components where possible.
Is bar 3 a 1Rev?
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