medium · Volume Spread Analysis background-trend-context

A practitioner identifies a 'Two-Bar Bullish Reversal.' What are the specific characteristics of the second bar in this sequence?

  1. An up-thrust probe that ultimately fails to hold onto its newly made highs.
  2. A wide-spread up-bar closing above the high of the previous high-volume down-bar.
  3. A test bar probing the lows of the previous bar on unusually high volume.
  4. A narrow-spread down-bar occurring on very thin, unusually low trading volume.

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