2 bar reversal

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This post follows part 1 of the series on 1,2 and 3 bar reversal patterns.

Of course, we could say that the a 2 bar reversal means a break lower than the low of the previous bar, after two consecutively higher lows, higher highs and higher closes. This is one definition of a 2 bar reversal (indeed it will be the definition of a 3 bar reversal in the next post in this series – in case you can’t wait).

However, we will make it quicker to define a 2 bar reversal.

Very simply, in an upmove, a 2 bar reversal means the price goes below the close of the bar before the previous in a situation of 2 higher highs and higher closes.

In a downmove, a 2 bar reversal means the price goes above the close of the bar before the previous in a situation of two lower lows and lower closes.

Simple and effective rule.  I will add some images later.

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Coming soon... signals every day. Pepperstone Group Limited

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