Itz,

The reversals are projections off the pivots that are formed...A bullish Reversal (green) is generated off an isolated low, and a Bearish Reversal (red) is generated off an isolated high. There are Major reversals and Minor reversals depending on if it is a major high or low. Each pivot creates 4 reversals. A reversal gets elected by closing above a bullish reversal or closing below a bearish reversal. A weekly reversal would be elected on a close of the week...and a monthly reversal would be elected on a close of the month. Once a reversal is elected it is no longer used....with the exception of, if it is elected and it closes more than 1% away from the reversal you can expect it to come back and test that reversal before moving in the direction it was elected.

So if you elect a bullish reversal you would expect price to move up to the next bullish reversal...as long as you keep electing them then the rally continues...if it rejects the reversal then you would look for price to test support. As long as you don't close below a bearish reversal the market is still in a bullish mode.

Normally you would wait to take a long off an elected bullish reversal...you can also take a long off a bearish reversal...your stop is a close below on a daily basis if it is a daily reversal.

I like to try and buy off a bearish reversal or sell at a bullish reversal...It is safer to wait until a reversal is elected though.