Key reversal bar

A candle pushes to a new low, then closes above the previous candle's high. Sellers made one last push and buyers took over before the candle closed.

Reversal strategiesIntermediateConfirmed on candle close

Watch it play out

Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.

How the live chart applies the rules
  • 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
  • Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
  • One setup at a time. While a setup is playing out, the same strategy doesn't start another.
  • Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
  • How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
  • Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
  • The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.

How Key reversal bar works

TargetStopSellers run out of steamTurn confirmed on close
Example drawing, not live market data.
1Where's the level?
The lowest low of the previous 10 candles (highest high for shorts).
2What's the trigger?
A candle trades below that low, then closes above the previous candle's high (above that high, then below the previous low, for shorts).
3Where is it wrong?
Just below the reversal candle's low.
4Where does it end?
2 times the risk.
Markets
Futures, Stocks, Forex, Crypto
Timeframes
5m to 1d
Sessions
Any
Also called
Reversal bar, Key reversal day

What it means

A candle pushes to a new low, then closes above the previous candle's high. Sellers made one last push and buyers took over before the candle closed.

How it is confirmed without repainting

The new low and the close are both part of one closed candle. Nothing is decided while it is still forming.

When it fails

The next candles fall back below the middle of the reversal candle.

Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.

More Reversal strategies

All strategies
ReversalBeginner

Double bottom and top

Price tests the same low twice and fails to break it, showing sellers are out of strength. When price clears the high between the two lows (the neckline), the reversal is confirmed.

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ReversalBeginner

Engulfing candle at a key level

An engulfing candle's body completely covers the previous candle's body, showing a sharp shift in control. It means most at a level that already matters.

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ReversalIntermediate

Failed breakout

When a breakout above a range closes back inside it, buyers who chased are trapped. Their exits can push price hard the other way.

See the rules