Reversal Gap Down

Reversal Gap Down

A Reversal Gap Down occurs when the close of bar 2 is greater than the close of bar 3, the high of bar 1 is lower than the low of bar 2, the close of bar 1 is lower than the close of both bars 3 and 4, and the close of bar 1 is in the lower half of the range.


Reference: Hill, John R. Stock & Commodity Market Trend Trading by Advanced Technical Analysis. Hendersonville, North Carolina: Commodity Research Institute, Ltd., 1977.