Category:MRB

Misplaced Reversal Bar. When a bar looks like a reversal bar but is in a place where it does not make sense, such as a bull bodied reversal bar above a gap but overlapping the prior day's range instead of clearly above HOY, there is a good chance it is a setup for failure. On the other hand, a good bull reversal bar below a large gap will often begin a trend from the first bar.