June 20, 2006

Snap-Back Reversal Bars

Filed under: Forex Trading, Technical Analysis, Trading Technique — tradingfives @ 3:05 pm

The Snap-Back Reversal Bar is a two bar signal. The concept (for a bearish reversal) is that Bar 1 opens in the bottom 1/3 of the bar and closes in the top 1/3 of the bar. Bar 2 snaps-back and opens in the top 1/3 and closes in the bottom 1/3.

Bar 2 does not have to make a new high. This characteristic may make the Snap-Back a little more difficult to recognize at first.


snapback.jpg

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