Two-Bar Reversal Pattern Explored on NASDAQ:AMZN
The two-bar reversal is one of the simplest candlestick patterns used in trading, but it can provide a complete framework for planning a trade. This straightforward approach can help bring more structure and consistency to swing trading.
To examine how this pattern works, Capitalcom uses TradingView's replay feature on Amazon's daily chart. They show both a bullish and bearish two-bar reversal as they develop, covering logical entry points, stop placement, profit targets, and the type of price action traders typically want to see after the pattern forms.
The video notes that this approach can help bring more structure and consistency to swing trading. However, it is essential to keep in mind that spread bets and CFDs are complex instruments with a high risk of losing money rapidly due to leverage. 89% of retail investor accounts lose money when trading spread bets and CFDs with this provider.