key reversal points by Armstrong
"Most of the time when one level is penetrated, the market price activity will continue to the next available Reversal."
"If you penetrate a reversal and then FAIL to elect it, this typically signal a move back in the opposite direction."
Minor reversals are certainly valid but can be overpowered by majors. the Dow tested and penetrated its minor daily bearish reversal yesterday at 26212 and came close to the next major bearish but did not elect it and the array showed a directional change today(Dow,Nasdaq) the Nasdaq and S&P 500 came close to their daily bearish reversals but did not elect them so there was only one direction the market could go and that was up.
I find that directional changes are very accurate and usually indicates that whatever direction we are in should reverse but this will be confirmed/denied by the reversals. we had a directional change in gold, silver and crude today where crude on Thursday elected 4 bearish reversals(minors) penetrated the 5th and closed right on it which is not an election confirming the directional change was to the upside. Silver penetrated its 4th daily
bearish reversal(minor) on Thursday and tested the 5th daily bearish reversal but for the close electing none indicating the directional change was to the upside.
If there are big gaps between reversals major to minor those levels of support and resistance tend to be quite strong and you can buy against them with more confidence.
we have a directional change on the Dow and the S&P 500 for Monday the 6th
"If you penetrate a reversal and then FAIL to elect it, this typically signal a move back in the opposite direction."
For what I have seen this is not the case, especially when there are Directional changes or Panic cycles. What I have seen happen is that price will penetrate 2 or 3 reversal but only 1 of them and the next day the other reversals will be elected. So have a look at the currencies, they are very precise and when a reversal holds it will often be within a few pips, if it penetrates the reversal, in my experience, it means price is likely to continue even if the penetrated reversal is not elected that same day. As I mentioned before, Directional changes are usually present when this happens.
I don´t know why he wrote it because if you follow price and reversals you will quickly see that it is just not true, if price stops at a reversal within a few pips and there is a DC or a turning point that day/week whatever, that is when price will likely revers, as he always says, time is then up.