the hAndbook of technIcAl AnAlysIsFigure 7.11 Four Basic Multiple Bar Bullish Reversal Patterns.
pattern 2 can also occur on high or above average volume, indicating bullishness.
Narrow‐ranging bars between the first and last bar on low volume is also indica-
tive of potential bullishness. A bullish pattern is considered potentially more reli-
able if the last bar in a multiple bar pattern is an overextended bar that closes near
or at its high on high volume.
two simple Continuation Bars
As far as continuation bars are concerned, Figure 7.12 depicts two patterns where
a bullish continuation in price is expected. Note that large volume occurring on a
bullish second bar is an indication that the trend may still be potentially strong.
Figure 7.12 Two Basic Continuation Bar Patterns.