Bar Chart Analysis
7.5 Chapter Summary
In this chapter we discussed the dynamics of bar action and how it is potentially
indicative of future price activity, especially when accompanied by significant in-
dicator and volume action. We also looked at various breakout patterns that may
prove effective in catching continuations or reversals in the market.Chapter 7 Review Questions
- What is the difference between exhaustion bars and pin bars?
- Why is the ID/NR7 pattern referred to as a volatility breakout pattern?
- What are the main characteristics of a key reversal day?
- Describe the 16 price and volume reversal characteristics.
- Explain how volume impacts bar chart pattern analysis.
- Describe two triple bar bearish patterns and how you would trade them.
- Describe the ideal conditions for an inside bar reversal.
- Describe how you would use oscillators to help gauge the degree of bearish-
ness or bullishness of various bar reversal patterns.
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Kirkpatrick, Charles, and Julie Dahlquist. 2007. Technical Analysis: The Complete Re-
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Pring, Martin J. 2002. Technical Analysis Explained: The Successful Investor’s Guide to
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