Community Forex Questions
What is double bar low higher close ?
The Double Bar Low Higher Close is a bullish chart pattern, as indicated by the fact that its acronym, DBLHC, stands for "Double Bar Low Higher Close." As a result, you should look for this pattern in markets that are currently experiencing an uptrend.
"Double bar low higher close" is a term used in technical analysis within the realm of financial trading, particularly in the context of candlestick chart patterns. This pattern typically occurs in a downtrend and signifies a potential reversal of the downward momentum.
In a double bar low higher close pattern, the first candlestick forms with a low that is lower than the low of the previous candlestick, indicating continued downward pressure in the market. However, the second candlestick forms with a higher close compared to the close of the previous candlestick, despite having a low that may be equal to or lower than the low of the first candlestick. This higher close suggests a shift in momentum, as buyers become more active towards the end of the trading period, pushing the price higher from its lows.
Traders often interpret this pattern as a sign of bullish sentiment emerging despite the prevailing downtrend. It indicates that buyers are stepping in to support the price near the lows, potentially signaling a reversal or a period of consolidation before a potential upward move.
However, it's important for traders to consider other factors such as volume, market context, and confirmation from other technical indicators before making trading decisions based solely on this pattern. Like all technical patterns, the double bar low higher close pattern is not foolproof and should be used in conjunction with other forms of analysis for better accuracy in trading decisions.
In a double bar low higher close pattern, the first candlestick forms with a low that is lower than the low of the previous candlestick, indicating continued downward pressure in the market. However, the second candlestick forms with a higher close compared to the close of the previous candlestick, despite having a low that may be equal to or lower than the low of the first candlestick. This higher close suggests a shift in momentum, as buyers become more active towards the end of the trading period, pushing the price higher from its lows.
Traders often interpret this pattern as a sign of bullish sentiment emerging despite the prevailing downtrend. It indicates that buyers are stepping in to support the price near the lows, potentially signaling a reversal or a period of consolidation before a potential upward move.
However, it's important for traders to consider other factors such as volume, market context, and confirmation from other technical indicators before making trading decisions based solely on this pattern. Like all technical patterns, the double bar low higher close pattern is not foolproof and should be used in conjunction with other forms of analysis for better accuracy in trading decisions.
May 16, 2022 14:50