What is a reversal bar?

In trading spotting a reversal bar is very important. Because that bar that indicates that a change of direction might come. When a reversal bar pops on the graph it means that there is big chance that the trend is going to change into the opposite direction. Most professional traders exit their trades when they see this bar and take their profit on time.

Now there are six types of reversal bar that you should know of:

  1. High Test Bar
  2. Low Test Bar
  3. Train Tracks
  4. Twin Towers
  5. Bullish Engulfing Bar
  6. Bearish Engulfing Bar