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Chart Patterns > Reversal Days > Closing Price Reversal

Closing Price Reversal

The bar is the same as the Open-Close reversal, but positioned differently relative to the preceding Close.

After an up-trend, a new High forms:

  • With the Open near the High,
  • The Close near the Low, and
  • The Close is below yesterday's Close.

After a down-trend, a new Low forms:

  • The Open must be near the Low,
  • The Close is near the High, and 
  • The Close is above yesterday's Close.

Reminder:

The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.







 
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