Besides a bar’s reversal, there is also the possibility to forsee the reversal of a trend by using two depletion bars.

The first of the two bars keeps the same direction of the main trend. For example, if you have an ascending trend it will have a positive closure very close to the trend’s maximum value. In the following bar, the opening price will be similar to the maximum of the previous bar. From this point on, the psychology of who buys or sells will influence the trend’s evolution thus letting the currency, title or index fall.

Although this method is very useful,  its usage is far more limited than the methods regarding a single depletion bar because it needs of a very long trend and that the two bars considered have a range larger than the average.

Another feature of the two bars is that sometimes the maximum price of the two bars is the same. In this case, a zone of significant price is created and most times it is the area in which an inversion has already happened in the past.