PATTERN: Reversal

TREND: Bullish

RELIABILITY: High


 How to identify it:
·  First day is a long black day

·  Second day is a small day that gaps in the direction of the previous trend

·  the third day is a white day

What it Means:

In a downtrend, the market bolsters the bearish trend with a long black day and gaps open

on the second day. However, the second day trades within a small range and closes at or

near its open. This scenario generally shows the potential for a rally, as many positions

have been changed. Confirmation of the trend reversal is given by the white third day.