The decline continues to record lower prices as reflected by the long black candle.
Next session is characterized by a smaller black body that is completely engulfed by the previous long black body, signalling weakness, setting the stage for further descent.
Sellers take advantage of the falling market, entering or adding onto their short positions. Buyers find prices attractive entering the market with long positions.
They do this in order to take advantage of the opportunity; pushing away from the low levels of the previous session, as the market action is contained in the range of the previous open and close.
As sellers demonstrate reluctance to push prices lower, a possible bullish reversal could be in the making.
|Direction||Possible bullish reversal.|
|Trigger||Consider buying if the next candlestick exceeds the high of the pattern.|