Bar Chart Analysis
Figure 7.18 Bearish Three‐Bar Reversal on the Daily Chart of Apple Inc.
Courtesy of Stockcharts.comalso see bearish divergence with the commodity channel index (CCI) oscillator.
Price subsequently declined in rapid fashion.triple Bar reversals
In Figure 7.18, we observe a three bar bearish reversal occurring in a clear and strong
uptrend on the daily chart of Apple Inc. The first bar closes near its high while the
third closes near its low. There is also bearish divergence with the +DM oscillator.
In Figure 7.19, we observe a three bar bullish reversal occurring on the daily
chart of ITC Holdings Corp. Notice that the middle bar occurs on below‐average
volume while the first and third bars close on high volume.Figure 7.19 Bullish Three‐Bar Reversal on the Daily Chart of ITC Holdings Corp.
Courtesy of Stockcharts.com