Theory of Tom & Jerry (Most Important)

This is best  prediction to know trend reversal signals from the line chart. Let we assume two characters, Tom and Jerry to our trends. Example as below,

Trend Reversal Signal 

1. From Up to Down

Always remember that in up trend when Tom is in left side and Jerry is in right side, It will sure that current trend turn into reversal trend it means it will goes to down trend. 

Here Tom indicate as big height and Jerry indicate as small height.

2. From Down to Up
In down trend when Tom is in left side and Jerry is in right side, It will sure that current trend turn into reversal trend it means it will goes to up trend.

Remember :

• A trend is in force till it has reversed.
• A trend has ended ONLY if there are clear signals that the opposite trend has started.
• Stronger the trend, stronger the trend reversal signal (and vice versa).