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Concealing Baby Swallow

 

Description

 

This reversal pattern is considered a reliable indicator.

 

The first two days are Black Marubozu (open is the high, close is the low). The next day is a black candlestick day gapping in the same direction, but trading into the body of the second day. The last day is a Black Marubozu, gapping up and selling to engulf the third day.

The two Black Marubozus show the bears are strong and in control. The gap down is bearish as well. The stock sells off again, indicating the bulls are giving up. Once that happens, with no more sellers, the down trend stops. Once the shorts start to cover, there are no sellers to block a bounce.

 

Market Opinion

 

Bullish.

 

Pattern

 

Description: Description: C:\avasaramworkspace\avasaramWeb\web\tutorials\candlesticks\Concealing Baby Swallow_files\image001.jpg 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
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