Two Bar Reversal
Volume Price Analysis glossary · Climactic Price Action & Reversal Dynamics
Definition
A two-candle pattern where a wide candle in one direction is immediately followed by an equally wide candle in the opposite direction, often on heavy volume — signals climactic reversal.
Two Bar Reversal in plain English
Think of a market as a tug-of-war between buyers and sellers. A Two Bar Reversal is when one side yanks the rope hard one way (a long candle up, say), and instantly the other side yanks it just as hard the opposite way (an equally long candle down) — usually with a burst of heavy trading. That sudden, forceful flip tells you the crowd that was winning just got overwhelmed and the price is likely about to change direction. The bigger the two candles and the heavier the volume, the more convincing the reversal.
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