Trend reversal identification is child play now

This was an attempt to find out a simple method  to identify the trend reversal  for the common man who don’t know to much about any technical software or any other tools.

Method :

Compare todays closing price with 6 day prior  closing price.  ( can be used for stocks as well as nifty ).

If the current closing price  is less than 6 day prior closing price,   then “SELL”
If the current closing price is greater than 6 day prior closing price,  then “BUY”

Here no calculation,  no formulae is needed.  Only visual inspection is enough

Eg:    RANBAXY
Date           Closing price
20/1/12         468.35
23/1/12         463.45
24/1/12         467.70
25/1/12         474.50
27/1/12         443.90
30/1/12         450.65
31/1/12         449.55

here in this example,  as on 31/1/12,  the closing price was 449.55.    5 day prior closing price is  463.45.

So, the current price is less than the 5 day prior closing price.  Therefore it is  SELL as per this method.