Wyckoff trading method, page-1421

OK, have a look at this combination.


This two bar set up is the classic textbook two bar reversal (or potential bullish reversal).
The first bar sees a close down near the bottom of the bar, which gives the impression of weakness.
The second bar tests the lows of the first bar, and makes a lower low, however instead of breaking down further, enough support comes in to bring price back within the range of the first bar.  And that demand is strong enough to carry price right up through the spread of the first bar, and challenge its high.
The close above the first bars high is potentially bullish, it suggests strength, and that demand has overcome supply.
The expectation would be for the next bar to move higher in response

cheers