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Technical traders evaluate the shifting balance of supply and demand for stocks or ETFs. Learn about three bar patterns they use to identify these trends.
CIBC Investor’s Edge 3 minute read

Key reversal bar

(Figure 1: Bullish Key Reversal Bar) A bar shows a wide trading range. Stock opens strongly in the direction of the preceding trend and closes near the previous day’s low.

Figure 1: Bullish key reversal bar

Two bar reversal

(Figure 2: Bullish Two Bar Reversal) A bullish two bar reversal comes at the end of a defined downtrend.

Figure 2: Bullish two bar reversal

Gaps

(Figure 3: Bullish Gap Up) A bullish gap up occurs at the end of a strong downtrend.

Figure 3: Bullish gap up

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