Three Bar Reversal Pattern

The Three Bar Reversal Pattern indicator automates detection of the three-bar reversal, a compact sentiment shift in which two bars extend the prevailing move and a third turns against it. Each confirmed pattern is marked on the chart and unpacked into levels: the pattern's upper boundary often serves as resistance and its lower boundary as support, giving retracements and breakouts a concrete frame.

How to Trade the Three Bar Reversal Pattern?

• Pattern marker: a potential reversal flagged directly on price as the third bar completes the formation.
• Normal pattern: the base formation, without requiring the third bar to exceed the first bar's extreme, for earlier but softer signals.
• Enhanced pattern: demands the third bar surpass the first bar's high or low, for fewer and clearer reversal indications.
• Derived levels: pattern boundaries become support and resistance for planning retracement entries or breakout continuations.
• Trend filtering: keep only patterns aligned with the trend read from a Moving Average Cloud, Supertrend, or Donchian Channels, or deliberately hunt 'Opposite' prints for contrarian setups.

Filtering is what makes the tool selective: raw reversal patterns appear frequently, and pinning detection to a trend regime turns a census of formations into a shortlist worth acting on.

Three Bar Reversal Pattern Settings

• Pattern Type: Normal, Enhanced, or All.
• Derived Support and Resistance: toggle the levels drawn from pattern boundaries.
• Filtering: pick the trend indicator and whether patterns must be 'Aligned' or 'Opposite'.
• Moving Average Cloud: SMA, EMA, or HMA type with fast and slow lengths.
• Supertrend: ATR length and multiplier; Donchian Channels: calculation length.

Frequently Asked Questions

Should I run Normal or Enhanced patterns?

How should the trend filter be set?

Where can I get this pattern indicator?