3 Bar Reversal – Swing Trading

The 3 Bar Reversal Pattern

The 3 bar reversal pattern is a pretty simple daily pattern that based on three following bars.

RULES FOR LONG

  1. Bar 1 closes down
  2. Low of Bar 2 is below low of Bar 1
  3. Bar 3 cross above the high of Bar 2
  4. Buy at close of Bar 3
  5. Stop Loss @ low of bar 2
  6. Take Profit 1 = Stop Loss
  7. Take Profit 2 – Managed By Strategy

3 bar reversal

RULES FOR SHORT

  1. Bar 1 closes up
  2. High of Bar 2 is above high of Bar 1
  3. Bar 3 cross below the low of Bar 2
  4. Sell at close of Bar 3
  5. Stop Loss @ high of bar 2
  6. Take Profit 1 = Stop Loss
  7. Take Profit 2 – Managed By Strategy

3dayreversalshort

Read previous post:
information arbitrage
Information Arbitrage – Trader? Read This!

Information Arbitrage - What big hedge funds and banks don’t want you to know Information Arbitrage these days, with so...

Close