The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

the hAndbook of technIcAl AnAlysIs

In Figure 7.3, we observe price activity over a series of 5‐minute intervals and
the corresponding graphical representation of OHLC price bars for each interval
represented below.

Classification of price Bar Formations

There are three basic ways to classify price bar formations, namely via:

1. The number of bars that make up the formation:

■ (^) Single bar formations
■ (^) Double bar formations
■ (^) Triple bar formations
■ (^) Multiple bar formations
Figure 7.1 Construction of a Price Bar.
Figure 7.2 Constructing a Higher Timeframe Price Bar.