This pattern signals a trend... | How to identify... | Similar pattern(s)... |
Reversal |
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Psychology...
The gap up on the second day encourages the bulls, however the close on the second day is nearly the same as the open on the second day. This could be a sign of temporary profit taking by the longs, however the third day reveals that the more likely scenario is indecision on the second day. Watch for additional downside price action in the next few days.