
| This pattern signals a trend... |
How to identify... |
Similar pattern(s)... |
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Reversal |
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Psychology...
The bears are in control for the 1st two days
of this formation. However, the high on the 3rd day trades above the close of
the previous day. And, a strong upward opening gap appears the last day. Since
the last day closes at a new low, then this is the perfect opportunity for
shorts to cover their positions. Strong short covering should propel the price
upward in the coming days.