Bullish Upside Gap Three Methods

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Continuation	1st two day are long white days with a gap between them. 3rd day is a black day that fills the gap of the 1st two days.	Bullish Upside Tasuki Gap

Psychology...

The gap up on the 2nd day gets filled by the 3rd day. More investigation of the previous weeks is recommended in order to see if this is the first gap. If so, then this pattern is probably displaying short selling to 'close the gap' created and the bullish trend should continue.

Bullish Side-by-Side White Lines

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Continuation	1st two days are white days with an up gap between the 1st and 2nd day. 3rd day is a white day about the same size as the 2nd day, opening at about the same price.	none

Psychology...

The 2nd and 3rd days are a failed attempt to reverse the uptrend. The uptrend remains intact.

Bullish Concealing Baby Swallow

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Reversal	1st two days are black marubozu days. 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. 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.

Bullish Three-Line Strike

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Continuation	1st three days make up the Three White Soldiers formation. The last day is a black day that opens above the 3rd day and closes below the 1st day's open.	Bullish Three White Soldiers

Psychology...

The 4th day is a powerful move down which destroys the reversal sentiment. Since the reversal has essentially already played out in a matter of one day, the risk is now higher for those who wish to bet on a reversal. The uptrend should resume.

Bullish Ladder Bottom

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Reversal	1st three days are long black days with lower opens and closes each day. 4th day is a black day with an upper shadow. The last day is white that opens above the body of the 4th day.	Bullish Concealing Baby Swallow Bearish Three Black Crows

Psychology...

In a downtrend and after moving solidly down for three consecutive days, the bears feel in control. The 4th day prices trade near the open of the previous day, but close at another new low. This draws attention to the bears who realize that markets do not go down forever. If the next day opens higher, then shorts will lock in profits. And if volume is high, then a reversal has probably occurred.

Bullish Breakaway

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Reversal	1st day is a long black day. 2nd day is a black day whose body gaps down. 3rd & 4th days close lower each day. 5th day is a long white day that closes inside the gap created by the 1st and 2nd days.	none

Psychology...

The down trend is accelerated by a gap down. The next few days trend down, however start to run out of steam. The last day of the formation shows a breakout and close above the previous 3 days, however the gap created on the 1st day remains unfilled. Since the gap is not filled and the trend is obviously deteriorating, this implies the reversal signal.

Bullish Rising Three Methods

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Continuation	1st day is a long white day. Three small body candlesticks follow the 1st day. Each trends downward and closes within the range of the 1st day. The last day is a long white day and closes above the 1st day's close.	Bullish Mat Hold

Psychology...

This is a formation which shows the market taking a breather before continuing its uptrend. Notice that a new low is not seen during the 4 remaining days of this formation. This gives confidence to the bulls, making way for the next move upward in price.

Bullish Mat Hold

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Continuation	1st day is a long white day. 2nd day is a black day that gaps above the 1st day. The next two days are small body days which trend lower and stay within the range of the 1st day. The last day is a white day which closes above the previous four day's range.	Bullish Rising Three Methods

Psychology...

This is a resting pattern for the bulls. The 2nd day still closes at a new high and the 4th day still closes above the 1st day's open. Bears worry that a reversal in not in the cards this time. Hence, the bullish trend continues on the 5th day.