- BUOVB stands for Bullish Outside Vertical Bar and it is a bullish pattern which means you look for this pattern only when the market is in an uptrend.
- How do you spot the Bullish Outside Vertical Bar pattern? Well, it is a 2 bar chart pattern and the first bar must be a bearish bar (red) and the second bar must be bullish (green bar) which overshadows the first bar because its high may be a few pips more higher than that of the first bar and its low may be a few pips or more lower than the first bar.
- How do you trade the bullish outside vertical bar pattern?: There are two options, buy at market order as soon as 2nd bar closes or you can use a pending buy stop order just 2-3 pips above the high of the 2nd candlestick.
- For your stop loss, place it 2-5 pips below the low of the 2nd candlestick in the pattern.
Here’s and example of what a BUOVB pattern looks like:
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