AI Hub 26 November 2023 What Does the Term ‘5-Bar Validation’ Mean in Reference to Forex? The term ‘5-bar validation’ is a technical analysis tool used by traders to analyze the price action of a currency pair. It is based on the concept of validating price movements with five consecutive bars or candles. This tool helps traders identify possible trends and make informed decisions about their trades. In forex trading, 5-bar validation is used to determine whether a trend has been established or not. The idea behind this technique is that if five consecutive bars or candles show a price increase, then it can be assumed that there is an uptrend in place. Similarly, if five consecutive bars or candles show a price decrease, then it can be assumed that there is a downtrend in place. The 5-bar validation technique requires traders to look at the...