cheers pops over in the west, page-26

Mitta, am I reading it wrong?

A Two Bar Reversal is a classic signal of trend exhaustion. When these patterns occur after a pronounced advance or decline, the first bar should exhibit a dramatic continuation of the inbound trend, closing close to the bar's extreme end. The second bar completely negates the first bar, with the open price on the second bar being close to the close of the first bar and the close of the second bar being close to the open of the first bar. Wider trading ranges on both bars denote a more climactic reversal in psychology. Thats near perfectly describes LYC action.


Yesterdays bar doesn't exhibit a dramatic continuation of the inbound trend. Were in a down trend so that bar should of closed on its butt. Then todays bar should of closed at the top. Then it would of been a bullish two bar reversal???

Thats why I dont think this indicator is bullish.