Signal Bar

The main difference in the Signal Bar variation from what you’ve seen so far is that the Signal Bar close does not have to be lower than the previous bar close. The bearish Signal Bar close must be lower than the Signal Bar open, however. A bullish Signal Bar, which can occur only at swing lows, would close higher than the Signal Bar open. The other distinguishing Signal Bar characteristic is that the bullish Signal Bar must open in the top 1/3 of the bar and close in the bottom 1/3. Buyers took price to a new swing high from the opening but were not able to hold on to the gain. Sellers came in and dominated the closing process.