Three Bar Reversal Strategy for Intraday/positional Trading

TRADING RULES

LONG SETUP

1. Bar 1 closes down
2. Low of Bar 2 is below the low of Bar 1 (and Bar 3)
3. Bar 3 closes above the high of Bar 2
4. Buy at the close of Bar 3

SHORT SETUP

1. Bar 1 closes up
2. High of Bar 2 is above the high of Bar 1 (and Bar 3)
3. Bar 3 closes below the low of  Bar 2
4. Sell at the close of Bar 3

TRADING EXAMPLES

Buy examples

This a Daily chart of  futures. It shows the regular session.

1. The last bar of the pattern closed above the highs of the two  bars. That was our signal to buy.

Sell EXAMPLES

This a Daily chart of  futures. It shows the regular session.

1. The last bar of the pattern closed below the low of the  previous bars. That was our signal to Sell.

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