Recall from the video presentation that the importance of this indicator arises when it STOPS plotting.

In the example above, since the JFC Market Direction Indicator is forecasting an uptrend for the balance of the day, we will only be considering buy side signals for the entire day.

The JFC Reversal Indicator gives buy signals when the small cyan squares STOP plotting on the chart. Note on the graph above the ensuing price activity which occurs when the cyan squares cease to form.
 
 

On the video presentation I made a brief mention of a particular buy signal which was issued by the JFC Reversal Indicator that would have not been entered, as the interaction with the JFC Entry Point Indicator would not have resulted in a filled order. This individual buy signal is marked in the chart above as "Skipped Buy Signal". The red and blue dots added on the chart are the plots created by the JFC Entry Point Indicator.

The chart below is an expanded look at the same portion of the chart above, concentrating on the signal in question.
 
 

The important point to understand on this chart is the buy stop placement as directed by the JFC Entry Point Indicator. Note on the graph above the successively lower placement of the active buy stop as placed by the indicator. Note, as the market moves lower, the entry point indicator gradually lowers the calculated resistance level which is used to place the buy stop.

Thus, even though the JFC Reversal Indicator has issued a buy signal, you would not have entered the trade as the market did not trade up through the buy stop above. This is a very important concept as it will regularly keep you from entering an inappropriate trade.

Also note that, after a second buy signal is issued by the JFC Reversal Indicator, the JFC Entry Point Indicator calculates another resistance level at which a buy stop is placed. This stop is activated when the market trades through resistance, resulting in the entry into a profitable long trade.
 

More Details:  JFC Entry Point  JFC Market Direction