Three Bar Close Reversal Down

Three Bar Close Reversal Down

 

Yes, the picture is confusing, but the pattern is not. A Three Bar Close Reversal Down occurs when the high, low, and close of bar 1 are lower than the highs, lows, and closes, respectively, of bars 2, 3, and 4.


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