Pattern Detail

Three-Bar Reversal

How often a fourth-bar reversal after three directional sessions actually carries into the next day.

Total Reversals

530

Three-bar reversal sessions in NQ over the sample period

Bull-to-Bear

286

Three up sessions then a lower-high+lower-low session

Bear-to-Bull

244

Three down sessions then a higher-high+higher-low session

Continuation Breakdown

Bull-to-Bear

Reversals
286
Continued
122
Continuation rate
42.7%
Avg next move
-0.05%

Bear-to-Bull

Reversals
244
Continued
132
Continuation rate
54.1%
Avg next move
-0.14%

Avg next move is signed in the reversal direction. Positive = the reversal sustained on average.

Recent Reversals (20)

Date Type Continued Next Move
Feb 6, 2026 Bear → Bull Yes +0.76%
Jan 29, 2026 Bull → Bear Yes +1.22%
Jan 14, 2026 Bull → Bear No -0.32%
Jan 8, 2026 Bull → Bear No -0.98%
Dec 29, 2025 Bull → Bear Yes +0.24%
Dec 15, 2025 Bear → Bull Yes +0.15%
Dec 8, 2025 Bull → Bear No -0.13%
Nov 10, 2025 Bear → Bull No -0.26%
Nov 4, 2025 Bull → Bear No -0.63%
Oct 30, 2025 Bull → Bear No -0.47%
Oct 3, 2025 Bull → Bear No -0.75%
Sep 30, 2025 Bull → Bear No -0.46%
Sep 26, 2025 Bear → Bull Yes +0.45%
Sep 23, 2025 Bull → Bear Yes +0.37%
Sep 17, 2025 Bull → Bear No -0.91%
Aug 29, 2025 Bull → Bear No -0.12%
Aug 14, 2025 Bull → Bear Yes +0.48%
Jul 22, 2025 Bull → Bear No -0.44%
Jul 4, 2025 Bull → Bear Yes +0.10%
Jul 1, 2025 Bull → Bear No -0.67%

Detection scan: NQ 1d · 2008-01-02 to 2026-02-24 · generated Apr 26, 2026

What this pattern measures

A three-bar reversal is a session that breaks the directional momentum of the previous three. Two flavors:

  • Bull-to-bear: three consecutive sessions of higher highs AND higher lows, followed by a session with both a lower high AND a lower low.
  • Bear-to-bull: the mirror — three sessions of lower highs and lower lows, then a session with higher high and higher low.

Definitions used on this page:

  • Sessions are aggregated from RTH bars only (08:30 to 15:00 Central Time for CME equity index futures).
  • The “reversal session” is the fourth bar — the one breaking the pattern.
  • Continuation = the next session closed further in the reversal direction (lower for bull-to-bear, higher for bear-to-bull) than the reversal session’s close.

Why it matters

The three-bar reversal is one of the older bar-shape signals. The thesis is that three consecutive directional sessions exhaust the move and the fourth bar telegraphs a turn. The follow-through question is whether the reversal session is the start of a new direction or just a one-day shake.

How to read the numbers

  • Continuation rate is the share of reversal events whose next session closed further in the reversal direction.
  • Avg next move is the average next-session close move from the reversal session’s close, signed in the reversal direction. Positive means the reversal sustained on average.
  • The two reversal types are reported separately. They tend to behave differently because asymmetry between bullish and bearish regimes is a real feature of equity index futures.

What’s not here

  • Looser pattern variants (some traders allow inside bars within the three, or count higher-high-only without higher-low).
  • Multi-day follow-through windows.
  • Conditioning on the sizes of the three preceding bars.

Keep going

Explore this pattern further with live data.