Testing price level

The concept of testing refers to the market moving towards a price
level to “test” if the price level will reject the market’s advances.
The high and low of each price bar are natural support and resis￾tance levels. The test of these levels show the undercurrents of the
market and is critical for reading price action.
Reading Price Action With Bar Tests
This is the same chart as the previous one. But here, we focused on
the testing of bar highs/lows to see what it tells us about the market.
1. The second bar rose above the high of the first bar but was
rejected. (Bearish)
2. The second bar punched below the low of the first bar and
continued to become a strong bearish bar. (Bearish)
3. After falling below the first bar, the second bar reversed up And closed higher.