Mish Schneider's Rules for Reversal (she is someone that several professional traders friends read and say she is usually right):

Quote:

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Here are the 5 criteria of what makes a solid reversal pattern.

Price-made a new 60 plus day low or high.
An Expanded Trading Range beyond the average true range.
Volume-well over the daily average and even better if it trades closer to double the average amount.
Closing Price-over the prior day high/low.
A close 25% from the intraday high/low

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