A long black candlestick forms in the direction of the prevailing trend, signifying that the decline is still in force.

Next session gaps below, forming a small candle that acts as an obstacle to further decline.

A long white candle drives the market higher, well into the long black candle’s body and more specifically, above its mid-point – Indicating a bullish reversal.

Traders enter the market with short positions, pushing prices even lower in the direction of the established downward move.

A sudden phase of indecision or pause in the market appears and it is manifested by the small bodied candlestick, implying that the bears are losing their strength.

Eventually, buyers’ pressure overcomes sellers’ pressure and the market bounces up and closes in the upper area of the long white candlestick.