This pattern signals a trend...
How to identify...
Similar pattern(s)...
Reversal
  1. 1st day is a long black day.
  2. 2nd day is black forming a harami.
  3. 2nd day's low sets a new low.
  4. 3rd day is a short white day which is below the 2nd day.

Psychology...

The 1st day's long black candlestick enforces the bears position. The next day a new low is set, however it closes higher than the 1st day. The 3rd day produces some indecision on the part of the bears. Watch for the reversal confirmation of a new high on the next day.


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