Price Action PATTERN #4: BEOVB

• Bearish Outside Vertical Bar–BEOVB is a bearish forex chart pattern so look for this pattern when the market is in a downtrend.
• How do you spot the BEOVB Pattern? It is a 2 bar chart pattern, the first bar must be a bullish bar (green) and the second bar must be bearish which overshadows the first bar because its high may be a few pips higher than than that of the first bar and its low may be a few pips or more lower than the 1st bar.
• How do you trade the BEOVB pattern? You have two options…first option is to sell at market as soon as second bar closes. The second options is to place a pending sell stop order just 2-3 pips below the low of the second candlestick.
• For your stop loss, place it 2-5 pips above the high of the second candlestick in the pattern.

Here’s an example of  BEOVB and how to trade it: