I had a few more of those two bar combinations to post, but won't bother with them all now, and will just post one more.
One that you will see from time to time, and is potentially bullish, and is handy to know and understand.
Perhaps I didn't explain the idea very well.
It was to look at the relationship between one bar and the next using just the spread or range of the bar, and the position of the close.
And from that, offer a reasoned answer to what the next bar might do in response.
Trend cannot be considered, as there is no known trend.
Strength or weakness in the background cannot be considered, as there is no known strength or weakness in the background.
There is no known context at all, just the two bars.
OK, have a look at this combination.
This two bar set up is the classic textbook two bar reversal (or potential bullish reversal).
The important features are an initial downbar that closes low.
Then the second bar briefly trades below the first, then reverses and moves up to close above the first bars high.
So the first bar sees a close down near the bottom of the bar, which gives the impression of weakness.
The second bar tests the lows of the first bar, and makes a lower low (effectively offering the upper hand to any sellers who are active),
however instead of breaking down further, enough support comes in to bring price back within the range of the first bar.
And that demand is strong enough to carry price right up through the spread of the first bar, and then challenge its high.
The close above the first bars high is potentially bullish, it suggests strength, and that demand has overcome supply.
The expectation would be for the next bar to move higher in response
cheers
