Hey Trader,

I want to share with you a simple pattern to watch for that reveals a possible trend reversal.

Let?s say that on Day #1, for example, price opens within the first 10% of that day?s final range and thru the course of the day price then declines and closes within the bottom 10% of that day?s range.

The following day on Day #2, price opens within 10% of the final day?s range and thru the course of the day price rallies and closes within the top 10% of that day?s range.

If Day #2?s price range is equal or at least almost equal to Day #1 then this type of pattern reveals that a sharp reversal may be in play.

These types of patterns can be found almost daily and daily price bars over thousands of stocks.

The reason these patterns form is because on Day #1 bad news or rumors cause panic and shareholders begin selling the stock off in a panic. The following day on Day #2 the stock either becomes attractive to value investors or the rumor or bad news that was released was found to be false or simply not relative anymore.

These types of opportunities are ripe for stock and options traders. Next newsletter, I?ll talk a little about how to take advantage of patterns like this.

Till then, take care.

Good Trading,

Billy W. www.stockoptionsystem.com

3828 West Davis Ste. 308-108 Conroe, TX 77304