A small candlestick body of either colour follows a candlestick of a long white body.

The colour of the small candlestick is not important. The bullish rally is running out of steam as shown by the presence of the small candle which signals uncertainty, as it is contained by the previous long body.

The weakness of the market to push prices higher and the presence of the pattern at the end of an upward move, signals possible bearish implications.

After a prolonged rally, traders continue to trade in the direction of the prevailing trend until the market enters a phase of uncertainty, as traders are not willing to move the market higher nor lower at the moment.

The fact that price action has been contained within the previous session’s open and close manifests reluctance to move higher and a possible bearish reversal.