Unlock all premium content by purchasing Monthly Subscription plan. You’ll also get Stock buy/sell levels with charts before market open. Checkout our old stocks levels recommendation. If you already have membership please login
The negative inside bar number 15, has an upper shadow and is on the relative low of at least 20 bars and is a reversal signal .
How does the price move?
- bearish trend or breakout, resulting in the formation of a relative minimum ;
- indecision on the minimum of the outside bar, depicted with a shadow;
- subsequent indecision with the formation of a negative inside bar with an upper shadow and that rests on the minimum. The body of this inside is often contained in the lower shadow of the outside;
- the price breaks the relative minimum and then rises again.
- You go long when the price goes back beyond the closing of the inside bar or exceeds the maximum;
- stop loss below the relative minimum, below the minimum of the inside bar or below the minimum of the bar in formation;
- take profit as always.