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Bullish Concealing Baby Swallow


https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLb5cKdb1uOK_P_LUgwUbX2cLG4Buz00ehD12RtpmeDmi4mMO_Lb6IHGFRCXc63_HjAjM2J_CahB1ZshfbFMjkCGtbZ_-awJXRQLQ2B7RRFgbKbjPtIiFKZHxt7N_Uvi0f2KdChIvnspQ/

This pattern signals a trend...

How to identify...

Similar pattern(s)...

Reversal

  1. 1st two days are black marubozu days.
  2. 3rd day is black and opens with a gap down as well as a long upper shadow that trades into the body of the 2nd day.
  3. 4th day is black and completely engulfs the 3rd day.
  • Bearish Three Black Crows
  • Bullish Ladder Bottom

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.