Types Of Bar Charts

Key reversal The bearish key reversal makes a higher high than the previous time frame and usually closes below the prior time frame’s close and the general trend direction. This occurrence is frequently accompanied by unusually strong volume and indicates the trend is reversing.

The outside bar occurs when the current range takes out the previous time frame’s high and low, but the close is consistent with the current trend. It usually signals the continuation of the market’s direction.

The settlement price reversal bar occurs when the bar moves in the same direction as the previous time frame’s bar—a higher high and higher low for an uptrending market—but closes lower than the previous time frame’s settlement price.

The inside bar is the current bar’s high and low are within the previous time frame’s high and low— that is, the whole current range is within the previous bar’s range. The close is not considered important by most chartists.