Bar patterns are nifty short-term patterns that are useful for timing trades and finding logical stop-loss points. No price action trader can do without learning about bar patterns. So these are 10 bar patterns that price reversal must know.
Reversal Bar Pattern What does it look like? A bullish reversal bar pattern goes below the low of the previous bar before closing higher. A bearish reversal bar pattern goes above the high of the last bar before closing lower. For the bullish pattern, the market found support below the low of the previous bar. Not only that, the support was strong enough to push the bar to close higher than the previous bar.