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Bar Chart Analysis

Figure 7.9 Basic Triple Bar Bullish Reversal Patterns.

sellers attempting to keep the closing prices at or near the low of each wide‐ranging

bar. Normally, low volume on the numerous bars between the first and last bar in

pattern 2 indicates that the wide‐ranging bars are not supported by sufficient demand

and hence bearish. In short, extremely high or low volume occurring on the numerous

wide‐ranging bars between the first and last bar indicates bearishness in an uptrend. A

bearish pattern is considered potentially more reliable if the last bar in a multiple bar

pattern is an overextended bar that closes near or at its low on high volume.

In Figure 7.11, we see four basic multiple bar bullish reversal patterns occur-

ring in a downtrend. As before, wide‐ranging bars between the first and last bar in

Figure 7.10 Four Basic Multiple Bar Bearish Reversal Patterns.