Tuesday, April 21, 2009

Common signal bars

Common Signal Bars
  • Pin bars
Small Bars:
  • Inside bar
  • ii or iii pattern
  • Small bar near the high or low of a big bar (trend bar or outside bar) or trading range (especially if there is a body in the direction of your trade indicating that your side has taken control)
Other Types of Signal Bars
  • Outside bar
  • Double Bottom Twin: consecutive bars in a strong bear with identical lows and preferably small or nonexistent bottom tails (a type of bear flag)
  • Double Top Twin: consecutive bars in a strong bull with identical highs and preferably small or nonexistent top tails (a type of bull flag)
  • Opposite Twins: Up Down Twin Top and Down Up Twin Bottom (consecutive trend bars in opposite directions with small tails and nearly identical highs and lows)
  • Reversal bar failure (for instance, buy above a bear reversal bar in a strong bull)
  • Shaved bar (no tail at one or both of its extremes) in a strong trend
  • Exhaustion Bar (huge trend bar)

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