the hAnDbook of teChnICAL AnALySIS- Bar Retracement Symmetry: A change in the number of bars in a retracement is
also an early indication of a potential change in trend behavior. Figure 5.14 shows
a change in the bar retracement symmetry leading to a strong upside move. - Average Bar Range: A decrease in the average bar range in an uptrend is an
early indication of potential weakness in an uptrend. In a similar fashion, a
decrease in the average bar range in a downtrend is a bullish indication. See
Figure 5.15. We can track the bar range using the average true range (ATR)
oscillator. Unlike average bar range, the ATR oscillator will account for gaps
between the bars as well.
Figure 5.16 shows a declining ATR during a steady uptrend in the GLD
SPDR Gold Trust Shares. Although volume is bullish, the ATR is indicating
otherwise. A large bearish candlestick completes the bearish picture. Price de-
clined after the volume climax.
figure 5.14 Break in Bar Retracement Symmetry Leading to a Change in Trend Behavior.
Source: MetaTrader 4
figure 5.15 Decreasing Bar Range Indicating Potential Trend Weakness.