Bear bars with an top wick that makes up <45% of the candle and are above average size

Bull Bars with a bottom wick that makes up <45% of the candle and are above average size

Highlights

• A bull bar that fits the definition at the bottom of the trend and a bear bar at the top of the trend represent trapped traders on the given timeframe.
  • The there was an attempt to push the market to a new range
  • The attempt failed and it the other side was able to close the candle in their desired direction
• A bull bar that fits this definition at the top of the trend/range and a bear bar at the bottom of the trend/range represent accumulation and distribution / demand and supply.
  • The accumulators/distributors don't want to move price against themselves and thus back off because they can resume the pressure at better prices.
  • They are selling into bullish pressure or buying into bearish pressure, but don't have an interest in breaking the trend.
    • This could be associated with profit taking. Profit taking would be logical in situations where there was a reasonably sized accumulation range prior to the trend or if in a long-running range.
  • A large institution capable of a large amount of volume in a particular zone would be the ordinary suspect of this kind of a move so higher volume in the price zone should be expected.

Candles that fit this definition are most commonly found at tops and bottoms of trends. They also are found in the middle of fiercely disputed ranges.

When the bodies of bear candles have been full reversed near a low, there is generally a good entry at the high of the candle that made the low. But it might be a bumpy ride.

• What's happening is that bulls are attempting a reversal and getting smacked down by bears OR There are very large bulls that are pulling back as not to run the price up on themselves, while at the same time, attract bears in the market. Only to smash the bits and run the price up on the trapped bears.
• These are generally large institutions looking to accumulate at what looks to be a fundamentally cheap price area

This was an instance Demand at the bottom of a range

These trades do not necessarily lead to a trend, but usually offer some kind of upside: