The Naked Bar Upward Reversal is a three bar candlestick pattern with an inside candle as a entry point. This pattern is bullish since it has a candle closing red from the previous candle; the most bearish pattern possible. The following inside candle is a reversal of its previous candle with an open above the previous candle's close. Look to buy the next open above the inside candle's close.
This is a bullish reversal pattern and should be used in this context. Successful entries are found in corrections along an upward trend, or buying into a dip. Performance drops when the pattern appears at tops. To improve profitability, use a cluster of evidence to enhance the performance of this pattern. The intended time frame is within the daily and weekly.
Thanks for this. Is it possible to set an alert when an NBUR is triggered for a stock in my watchlist?
ChiragPatnaik
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Thank you for this. I was looking for something like this.
Can I suggest you look for a larger pattern (4-5 candles) which I have noticed in trending moves. These would go like GRRRG. I find these to be more powerful indicators of an uptrend.
MrDevDevy
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@ChiragPatnaik, There are many patterns and many are covered here. I was just adding this little nugget since to my surprise it wasn't added yet :)