False BarsTechnical Analysis
False bars give a fake display of price growth or contraction. These bars break above a resistance line, or below a support line, then revert back to the other side for their close. Note they complete back on the same side of the resistance, support, or trendline that they opened. At the time, it will seem like a breakout, but they will lose energy or momentum in that direction before the close, which is why post close bars are the best sources for interpretation of prices.
These bars represent a change in traders’ mindsets during the bar’s creation. They originally begin to push the trend in a specific direction, but don’t have the energy to continue that push. Exhaustion of the buying pressure if pushing upwards (or selling pressure if pushing downwards) occurs, and the other side takes over, moving the price back.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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