Hook reversal is a candlestick reversal pattern that hypothetically predicts a reversal trend about the previous candle range. Hook reversal pattern usually consists of two candles where the current candle is in the range with the previous candle.
Bullish to bearish hook reveal:
The Open bar is near the High price
The Close bar is near the Low price level
There is a lower High and Higher Low compared to the previous day.
Bearish to bullish hook reveal:
The Open bar is near the Low,
The Close must be near the High, and
There is a lower High and Higher Low compared to the previous day.
Let us see an example on image:
Trader since 2007. Currently work for several prop trading companies.
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