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The 3 day reversal is a pattern that can be used
#1 - To buy at lows
#2 - To sell at tops
#3 - To hop aboard trending moves

THE 3 BAR LOW IS WHEN

Day #2 makes a high that is lower than days 1 and 3 highs
Day #2 makes a low that is lower than days 1 and 3 lows
Day #2 leaves a clear low behind, for the 3 day sequence

If you decide it is time to buy a 3 bar low
#1 - Buy just above the 3 bar high
#2 - Put a stop if wrong just below the 3 bar low

THE 3 BAR HIGH IS WHEN

Day #2 makes a low that is higher than days 1 and 3 lows
Day #2 makes a high that is higher than days 1 and 3 highs
Day #2 leaves a clear high behind, for the 3 day sequence

If you decide it is time to sell a 3 bar high
#1 - Sell just below the 3 bar low
#2 - Put a stop if wrong just above the 3 bar high

HERES SOME CHARTS SHOWING THE 3 BAR REVERSAL
If you see one happening with the trend
It is a good try to get with the trend

SOME CALL THESE PATTERNS BLIPS

           

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Education - Home

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