Two-Day Price Patterns by Martin J. Pring
Coming at the end of a trend, these two-day patterns are solid signals of a reversal. Here’s the last of Pring’s three articles on price patterns.
Two-day price pattern formations, unlike others we have discussed, take just one or two days to complete and have a relatively short-term significance. I refer to them as “one-” or “two-day” patterns, but the wording could just as easily apply to weekly or monthly bars. I have even referred to this phenomenon on intraday charts as one-or two-bar price patterns, because that is what they are. In retrospect, it is probably better to use the generic “bar” rather than individual timeframes.