THE HAndbook oF TEcHnIcAl AnAlySISIn Figure 6.31, we observe two narrow range candlesticks on high volume at
Points 1 and 2. Notice how price subsequently reverses rapidly in the opposite
direction after the formation of these high volume reversal bars. We also see a low
volume breakout signal near the apex of the descending triangle formation during
the month of August. Notice the large volume surge on breakout.
In Figure 6.32, we observe a narrow range candlestick on high volume around
the beginning of November which led to a significant rebound in price in the U.S.
Dollar Index Bullish Fund.
fIgure 6.31 High Volume Reversal Bars on the Daily Chart of PowerShares DB U.S.
Dollar Bullish Fund.
Courtesy of Stockcharts.com
fIgure 6.32 High Volume Reversal Bar on the Daily Chart of PowerShares DB U.S.
Dollar Bullish Fund.
Courtesy of Stockcharts.com