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Bullish Engulfing pattern / Bearish Engulfing pattern | Market Structure Points | The 1-2-3-4 pattern | The Gap Reversal pattern | The Hammer Blast pattern | The Hikkake pattern | The Inside Bar Break-out pattern | The One Day Reversal pattern |
The Gap Reversal pattern was first described by trader David Pieper in Traders magazine.
As the name indicates, this chart pattern includes an opening gap. The pattern defines a gap as a difference of at least 1% between yesterday’s close and this morning’s open. The close price of the gap candle must be above its open price. In addition, the close price of the gap candle must be above its mid-price.
This example shows a Gap Reversal pattern detected by the NanoTrader on Coca-Cola.
This example shows a Gap Reversal pattern detected by the NanoTrader on the Dutch market index, AEX.