
| This pattern signals a trend... |
How to identify... |
Similar pattern(s)... |
|
Reversal |
|
|
Psychology...
A long 1st day with high volume in the
existing uptrend brings complacency to the bulls. The next day trades in a small
range within the previous day's real body. Light volume on the 2nd day should
give rise to concern by the bulls of an impending change of trend. Look for
lower prices over the coming days, especially if the next day provides
confirmation of a trend change by closing lower.