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.


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

Colin Twiggs

Author: Colin Twiggs is a former investment banker with over 30 years experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary newsletter.

Colin also writes The Patient Investor newsletter which focuses on the global economic outlook and key macro trends.

In addition, he founded PVT Capital (AFSL No. 546090) which offers investment strategy and advice to wholesale clients.