Forex Trading Technique - Outside Key Reversal

The Outside Key Reversal Bar is the top of the reversal bar food chain. The “outside” part of the definition means that the bar made both a higher high and a lower low than the previous bar. The Outside Key Reversal Bar is probably the easiest to recognize because it sticks out like the proverbial sore thumb on your trading chart.

Not every reversal bar will signal a change in trend, even this one, but when you see an Outside Key Reversal Bar on your trading chart your nostrils should flare and your eyes widen!