In this daily Japanese candlestick chart of ARNC, above, we can see prices have made a possible reversal called a "harami." This reversal pattern is similar to an "inside day" on a Western bar chart. Adding into the analysis mix that prices are getting into oversold territory (below 20 on the slow stochastic indicator), we have the potential for a reversal. A close above $20.50 in the next few days will be good confirmation that the strength can continue; $20.50 is the middle of the large red candle. The middle of large candles can act as support or resistance depending on the trend.
In this Point and Figure chart, above, we can see prices have not reversed to a down column that would be represented by O's.
Bottom line: Spotting a reversal in real time can be tricky compared to spotting an upside or downside breakout. What is that old saying? If you never attack, you will never earn the Navy Cross.