
| This pattern signals a trend... |
How to identify... |
Similar pattern(s)... |
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Reversal |
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Psychology...
The up trend is accelerated by a gap up. The
next few days trend up, however start to run out of steam. The last day of the
formation shows a breakdown and close below the previous 3 days, however the gap
created on the 1st day remains unfilled. Since the gap is not filled and the
trend is obviously deteriorating, this implies the reversal
signal.