Reversal Magic

TheBramble

Legendary member
8,395 1,170
Looks like a combination of keywords to grab the interest of Gann-ites, Ocean Theorists and Balance Pointers (along with the few Market Profilers who haven't gone insane transposing their axes).

Example charts look great. They seem to able to predict EXACTLY where to get in and get out AND let you know in advance how far (high/low and time) the next move it going to go. I'd pay anything for a system like that. Wouldn't you?

If nothing else, you have to look at this site for the photographs - genuinely worth the trip.

Yes, if nothing else.

Machiavelli, thanks for making your very first post on t2w such an interesting one. I look forward to many more from you.
 

Skimbleshanks

1
2,325 16
Machiavelli:

I have Reversal Magic, together with Balance Magic and Channel Surfing.

The manuals are comprehensive - the pages aren't numbered so I don't know how many there are, but the three manuals combined are just over 2cm thick. There has been an awful lot of effort put into the manuals, and there are lots of examples, etc.

If I have one moan it is that right the way throughout the author, Michael Parsons, uses the words Reversal Magic a lot. And not only that, but he puts it in capitals, bold, and italics - and it just makes the whole content harder to read. He has obviously forgotten that by the time you are reading the manual, you have paid for it, and therefore you don't need to have REVERSAL MAGIC hitting you in the face seven times on each page. It would be so much better if he just used RM in an ordinary font.

I can't tell you whether you'll find it worth its money - I paid, and in return got to know a natural phenomenon of the markets which I didn't know before, and so I was happy. I've never seen it referred to on these boards before.

Reversal Magic is all about drawing a few lines on your chart to give you reversal points. It depends on how good you are at trading and what methods you use, but I doubt that one would be able to trade solely on these points. But they are quite interesting to know about, and knowing about the projected reversal points gives you more of an idea of the market's natural wave movements.

Most of the examples are on daily charts, and therefore there is often a good deal of time before the reversal point, whereas I trade intraday, and so as I do not trade the entire trend, just each swing within it, I am not that bothered with the timing of reversal points of the main trend.

I don't use them much in my trading (and my style is price and volume only), but sometimes if the market is a bit boring I put the lines on just for my own amusement and they are quite spooky. I use other things to read the reversal points, but that is just because I've progressed quite a lot since I bought Reversal Magic just over two years ago.

Michael Parsons is an educated sort of chap, and so his writing style is easy to read, with good grammar and no spelling mistakes - which is quite a novelty in trading manuals! He also doesn't promote himself heavily, which I've always found quite refreshing - there are some whose sole objective is to promote themselves, and Michael appears not to be one of them.

Getting to grips with the whole Reversal Magic phenomenon will take a few weeks - it'll take a good week to read the manuals in the first place. So for the money, you'll get your money's worth in manuals, etc, and from then on it's up to you how and if you use it in your trading. The basic principle is easy to grasp, but there are things you need to do to account for gaps, holidays, etc, so it's not quite as straightforward as it first appears.

If you're the type who uses lots of Bollinger Bands and moving averages on their charts, then you probably won't find the space to put the Reversal Magic lines on - you need a nice clean uncluttered chart to do that.

Let me know if you need any further information.
 

Skimbleshanks

1
2,325 16
To give you a very rough idea of how Reversal Magic works (using the basic idea, not amended for gaps, holidays, etc) the Dow Jones daily price action over the last seven trading days suggests that the reversal point will be around October 11.

The Dow's movements intraday on Tuesday afternoon (Sept 14) gave the reversal point at the very end of Wednesday, which was correct.

So that is one very quick example in the future using a daily chart, and one with hindsight using an intraday chart.
 

Agisthos

Junior member
27 2
I have Reversal Magic and this system reminds me of the Delta Phenomenon. similar in that it forecasts reversal points in time.

But it is not something that can be traded on its own, and it seems to give some false signals as well.

It is unique and worth looking at.
 

Machiavelli

Newbie
6 0
Thank you all for your fast and honest answers.

@skimbleshanks: Thank you very much for your very comprehensive comments. Would you be so kind please,and give me your opinion on balancemagic and channelsurfing, too? Are the needed calculations and drawings of these methods easy to perform?

Are these methods similar to the wolfewave method?

The point is I'm looking for some reliable trading methods, and I have already bought enough trading-junk.

Thanks,
machiavelli
 
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Bigbusiness

Experienced member
1,408 23
I don't know if it is just the name 'reversal magic' but I have a hunch that this might have something to do with mirror image reversals. I could be completely wrong, as usual, but this chart of the points skim mentioned gave me the idea.

The box on the right is a flipped 180 degrees and turned upside down version of the one on the left.
 

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Agisthos

Junior member
27 2
Bigbusiness said:
I don't know if it is just the name 'reversal magic' but I have a hunch that this might have something to do with mirror image reversals. I could be completely wrong, as usual, but this chart of the points skim mentioned gave me the idea.

The box on the right is a flipped 180 degrees and turned upside down version of the one on the left.
'reversal magic' has nothing to do with mirror image reversals like you showed. but nice lateral thinking none the less.

I have only just discovered this forum tonight, is there a place where people can go and trade/swap some of the systems we have?
 

timsk

Legendary member
7,053 1,860
Reversal Magic
Skim - you never lose the ability to educate, surprise and amuse in your posts - and sometimes all 3 at once! On this occasion, I was VERY surprised at your comments about RM. Before I read your post, I expected that you would totally slate it. How wrong I was. To my mind, your review amounts to a big thumbs up for this product. ;)
Could you or Agisthos please confirm that the principle is thoroughly explained so that it's possible to understand how and why it works. In other words, am I correct in thinking that it's an applied methodology as opposed to a piece of 'plug in' software that gives buy/sell signals but no explaination as to what triggered them? Hope this makes sense!
Cheers,
Tim.
 

Agisthos

Junior member
27 2
It's not based on a piece of software at all, and is fully explained.

You actually find the reversal points just by using a ruler and drawing 2 lines (or using a charting draw tool). The point where the 2 lines meet is extrapolated into the future and this is your reversal point.

Sounds too simple right?
The author even says he cannot believe that such a technique has been missed by everybody.

I certainly had not seen it before. The problem is that even if you are able to forcast a reversal point, trading it correctly is another matter.

Also there is a slight subjectivity involved where you can find too many reversal points with some being weak and others strong.
It is certainly not as clear cut as the examples are made out to be on the website.

Having said that I think it is well worth buying and better than 95% of the garbage out there.
 
T

triplepack

0 0
I have come across something similar in Constance Browns book,
where you identify all the trend lines, s+r lines and as Agithos has said you follow them into the future and where they disect can indicate a point in time where there may be a signifiant reversal.
try it on the dow going back to last year and putting trend lines on the chart.
Use the minor trends as wellas the main channels it is interesting to see that it does identify turning points in the future.

Triplepack
 

Skimbleshanks

1
2,325 16
timsk:
Naturally, I'm delighted that I keep you in suspense as to whether I'm going to praise something or slate it. LOL Incidentally, for our US readers, to 'slate' something in the UK means to trash it, but to 'slate' something in the US means to praise it - so complete opposite meanings.

I would say that RM is a useful piece of the puzzle - it's not essential to know (far from it), but it can be quite useful. RM itself is very simple in fact - too simple really, so you may feel that you've spent quite a lot of money to find out something which would not really benefit your trading. However, as with every discretionary trading method, it takes a lot of time and practice to truly understand it. And it may be, as with me, that I didn't understand fully how it fitted in when I first bought RM - but I do now.

I don't want to give anyone the impression that I wholeheartedly believe that RM is a stonking good buy - because it isn't. It's just one piece of the puzzle, and one of the few that, looking back, I didn't mind spending money on.

If you are using candlesticks and indicators in your trading, then RM is definitely not for you - because you won't be able to train your eyes to 'see' the RM points because your eyes are focussed primarily on indicators and candle formations rather than the price.

Bigbusiness:

As Agisthos said, it's nothing to do with mirror reversal images - what you're thinking of is Adam Theory.

triplepack:

I have Constance Brown's book - what page/chapter do you believe this is discussed in? Let me know and I'll look it up and see if it is the same/similar.

Machiavelli:

Balance Magic is a way of measuring what has happened, to work out the target price level. So once you realise where the centre point is, you can have a fair idea of where the top (or bottom) will be. In other words, you are working out the balance point of trends, and once you can balance the market horizontally and vertically, you can work out price projections. So Balance Magic is price based, whereas Reversal Magic is time based.

Channel Magic is how you use channels to supplement the Reversal Magic points and Balance Magic points. I know least about Channel Magic, because I already knew quite a lot about channels, so didn't spend very much time on this.

I would say that the basics are exceedingly easy to understand - but it will take quite a bit of effort to hone your skills using these to an advanced level. You need to learn thoroughly the few quirks which mess up the basics. So it will take time ... and dedication to fully master it all. It will also save an enormous amount of time if you are used to looking at bars as the whole RM, BM and CM is based on bars, not candlesticks.

And even if you don't go on to use RM, BM and CM in your trading, if you spend enough time playing around with it, you will learn an awful lot about the natural price and time movements which each stock / index / commodity makes - assuming you spend the time applying each to a whole variety of trading instruments. This is something which I've only recently (in the last year) truly appreciated as being the key to the whole puzzle.
 

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