Three Bar Equilibrium Reverse Down

Three Bar Equilibrium Reverse Down

A Three Bar Equilibrium Reverse Down occurs when the close of bar 2 is within one percent of the close of bar 3, the ranges of bars 2 and 3 are less than range of bar 1, the close of bar 1 is in the lower third of the range, the close of bar 1 is lower that the lows of bars 2 and 3, and the low of bar 1 is lower than the high of bar 2.


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