Bottom Reversal

Volume Spread Analysis Glossary

A two-bar reversal pattern at the bottom of a decline. Bar 1 is a wide-spread down-bar on high volume (apparent selling); Bar 2 is a wide-spread up-bar that closes above Bar 1's high, revealing that Bar 1's high volume contained massive hidden professional buying disguised by the downward price action. Strongly bullish: the reversal from apparent weakness to confirmed strength marks a potential major bottom. Distinguished from a general two-bar reversal by its appearance specifically at established lows after an extended decline.

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