Abandoned Baby (a)

Bias: Bearish; Trend Reversal.

Identifying the pattern:

1. A gap-higher ends with a common Doji, which is then followed by another gap in reverse to the downside.

2. The shadows on the Doji must completely gap above the shadows of the first and third day.

What it means: This appears during an uptrend and signals a reversal pattern. After an uptrend Bulls and Bears trade evenly at the top. The third day brings sellers, a downside gap, and a bearish candle.

Psychology: Traders see that the uptrend has lost momentum and Bears may be gaining trend strength.

Reliability: High, however this pattern is rarely seen.

Abandoned Baby (b)

Bias: Bullish; Trend Reversal.

Identifying the pattern:

1. A gap-lower ends with a common Doji, which is then followed by another gap in reverse to the upside.

2. The shadows on the Doji must completely gap below the shadows of the first and third day.

What it means: This appears during a downtrend and signals a reversal pattern. After a downtrend Bulls and Bears trade evenly at the bottom. The third day brings buyers, an upside gap, and a bullish candle.

Psychology: Traders see that the downtrend has lost momentum and Bulls may be gaining trend strength.

Reliability: High, however this pattern is rarely seen.

Belt Hold (a)

Bias: Bearish; Trend Reversal.

Identifying the pattern:

1. A long red candlestick which opens at/near the session high and continues lower through the session.

* I have shown a Shooting Star top in this example, but nearly any single candlestick could act as the high, being confirmed bearish by the Belt Hold.

What it means: Strong change in trend sentiment has occurred. The longer the height of the candlestick line, the more significant it becomes.

Psychology: The actual Japanese term, yorikiri, is a sumo wrestling term which means "to push your opponent out of the ring while holding onto his belt".

Reliability: Medium.

Belt Hold (b)

Bias: Bullish; Trend Reversal.

Identifying the pattern:

1. A long green candlestick which opens at/near the session low and continues higher through the session.

2. If the day after the Belt Hold candlestick moves higher it is a good signal for a potential rally.

What it means: Strong change in trend sentiment has occurred. The longer the height of the candlestick line, the more significant it becomes.

Psychology: The actual Japanese term, yorikiri, is a sumo wrestling term which means "to push your opponent out of the ring while holding onto his belt".

Reliability: Medium.

Concealing Baby Swallow

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, two black Marubozu candles followed the third day by an Inverted Hammer.

2. The fourth day shows us a significantly higher gap at the Open and a red Marubozu that completely engulfs the previous day's Inverted Hammer candle. After the opening however, prices again go down to Close at a new low.

3. While the fourth day ends at the lows, the downtrend's strength has been diminished.

4. The reliability of this pattern is very high, but a confirmation in the form of a green candlestick with a higher close or a gap-up would be confirmation.

Psychology: The incentive for shorts to cover their positions is growing.

Reliability: High

Counterattack (a)

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, two strong green and red candlesticks have a closing line that is near to or identical in price.

2. The first candlestick, a long green one, promotes the bullish momentum.

3. The next session gaps strongly higher but then Bears pull price back down to/near the previous session's close.

Psychology: The incentive for Bulls to hold positions has weakened by the strong late selling by the Bears. See also the Piercing Line.

Reliability: Medium

Counterattack (b)

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During an downtrend, two strong red and green candlesticks have a closing line that is near to or identical in price.

2. The first candlestick, a long red one, promotes the bearish momentum.

3. The next session gaps strongly lower but then Bulls pull price back up to/near the previous session's close.

Psychology: The incentive for Bears to hold positions has weakened by the strong late buying by the Bulls. See also the Piercing Line.

Reliability: Medium

Dark Cloud Cover

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, a strong green candlestick further promotes the strong uptrend.

2. Day two opens with a gap higher. This suggests that bulls retain control. However, the rally does not continue. Price prints a Close at/near the Lows of the day.

3. The second day prints a long red candle with it's Real Body well into the prior day’s Real Body lower area.

4. Confirmation should be on the third day in the form of another red candlestick, a large gap lower, or a lower Close. See also the Piercing Line.

Psychology: Bull's have the uptrend interrupted and short sellers now have a benchmark to place a stop, which is at the new high of the red candle.

Reliability: High

Dragonfly Doji

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, this is a strong signal suggesting that the market is changing trend.

2. Pattern forms when the Open, High, and Close for the session are equal, and the Low creates a long lower Shadow.

3. This pattern indicates that Bears drove Price down during the session, however, by the end of the day Bulls pushed Price back to the Open level and the session high.

4. This pattern is easily identified by it's likeness to the letter “T”, with a long lower shadow and no upper shadow. It is regarded as being stronger than the Hammer. Also see the Gravestone Doji.

Psychology: The failure of the market to continue the downtrend greatly reduces bearish sentiment. Shorts become increasingly restless with their bearish positions as price closes the day at the highs.

Reliability: High

Engulfing (a)

Bias: Bearish; Trend Reversal

Identifying the pattern:

1.  During an uptrend, buy pressure is slowing. Then, at the Close, the red Real Body completely engulfs the previous day's green candle showing that Bears have taken control.

2. Look for further weakness during the third session for confirmation. Shadow length does not matter, it is the blanketing effect of the red candlestick's Body that we are focused on at the trend's top.

Psychology: Traders see that the uptrend has lost momentum and Bears have consumed the Bull's previously strong momentum.

Reliability: Medium

Engulfing (b)

Bias: Bullish; Trend Reversal

Identifying the pattern:

1.  During a downtrend, sell pressure is slowing. Then, at the Close, the green Real Body completely engulfs the previous day's red candle showing that Bulls have taken control.

2. Look for further strength during the third session for confirmation. Shadow length does not matter, it is the blanketing effect of the green candlestick's Body that we are focused on at the trend's bottom.

Psychology: Traders see that the downtrend has lost momentum and Bulls have consumed the Bear's previously strong momentum.

Reliability: Medium

Evening Star

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, this pattern begins with a strong green Body appearing on the trend.

2. Day two gaps higher and prints a small tightly contained Body. This suggests the diminishing drive of Bulls.

3. The third day is a red candle and represents the fact that the Bears have now seized control.

4. An ideal Bearish Evening Star should show a Close that is at least halfway down the green candle of two days prior. The optimal pattern should have Real Body gaps in the green and red candles where the small bodied Star topping candle is formed.

Psychology: The "star" is said to be the planet Venus high in the sky and darkness is soon expected; lower prices to come.

Reliability: High

Gravestone Doji

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, this pattern Opens at the low of the day.

2. Price rallies to a new trend high, however, the rally cannot be sustained and Price plummets back to the session’s Lows, where it closes for the session. Positive sentiment in the trend has been hurt.

3. Confirmation would be in the form of the next day's Open printing below the Gravestone Doji candlestick. The larger the downside gap the stronger the confirmation will be. A red candlestick with lower prices would also be another form of confirmation.

Psychology: The Gravestone Doji represents "the graves of Bulls who have died defending their territory." The graphic is that of viewed a gravestone from the side. See also the Dragonfly Doji.

Reliability: Medium

Hammer; a.k.a. Bullish Hammer

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, the Bullish Hammer is characterized by a Close above the Open price after a strong Intraday move lower. This creates a green Bodied candle that resembles a hammer at the bottom of the trend.

2. The strong Close reduces the previous bearish sentiment held by short traders.

3. It requires confirmation the next day by a green candlestick, a large gap up, or a higher Close. Also see the Hanging Man and Dragonfly Doji.

Psychology: Being on of the simplest visual charts to remember, it looks just like a hammer. It is said by the Japanese to be "hammering out a base".

Reliability: Medium

Hanging Man

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, the Hanging Man is characterized by a Close above the Open price after a strong Intraday move higher. This creates a green Bodied candle that resembles a hammer at the bottom of the trend.

2. The Low of the long lower shadow indicates that the sellers drove Price lower and sell pressure is starting to increase. This, even though Bulls appear to have regained their stance by the Close.

3. It requires confirmation the next day by a red candlestick, a large gap down, or a lower Close. Also see the Bullish Hammer.

Psychology: Strong sell pressure after a strong rally is always a serious cautionary signal.

Reliability: Medium

Harami

Bias: Trend Reversal Pattern

Identifying the pattern:

1. "Harami" is an old Japanese term for "pregnant. The long candlestick represents "the mother" and the following smaller candlestick, which is engulfed by the prior candlestick, is "the baby".

2. The Harami is a very common pattern which prints at both the top and bottom of short and long term price movements. In Western charting, this is known as an Inside Day.

3. Used as an early signal that the market will move against the previous trend.

Psychology: With price trading completely inside the prior session's High and Low, traders see that momentum has slowed or stopped.

Reliability: Medium

Harami Uptrend

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, this begins with a "Harami" pattern at the trend's base.

2. Confirmation may be in the form of a green candlestick, a large gap up or a higher Close on the next trading day.

Psychology: With price trading completely inside the prior session's High and Low, traders see that momentum has slowed or stopped. A higher move during the third day's session begins to squeeze short holders out.

Reliability: Medium

Harami Cross (a)

Bias: Bearish; Trend Reversal

Identifying the pattern:

1.  During an uptrend, this pattern begins with a long green Real Body followed by a smaller common Doji.

2. The Shadows of the Doji do not have to be completely engulfed by the Real Body, but it is preferred.

3. Also known as a "Petrifying Patten", the Harami Cross with it's potent Doji signal, is viewed as a major reversal sign.

4. Confirmation may be in the form of a third day red candlestick, a large gap down, or a lower Close.

Psychology: After a strong uptrend the Doji shows that Bulls and Bears have begun to have even order flow. This shows a disparity in the market's health.

Reliability: High

Harami Cross (b)

Bias: Bullish; Trend Reversal

Identifying the pattern:

1.  During a downtrend, this pattern begins with a long red Real Body followed by a smaller common Doji.

2. The Shadows of the Doji do not have to be completely engulfed by the Real Body, but it is preferred.

3. Also known as a "Petrifying Patten", the Harami Cross with it's potent Doji signal, is viewed as a major reversal sign.

4. Confirmation may be in the form of a third day green candlestick, a large gap up, or a higher Close.

Psychology: After a strong downtrend the Doji shows that Bulls and Bears have begun to have even order flow. This shows that selling has stopped or slowed significantly.

Reliability: High

Inverted Hammer

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, this suggests that Price may be approaching a base. It looks like its name, an upside down Hammer.

2. A long upper Shadow and a small Real Body at the lower end of the candlestick.

3. There should be no, or very little, lower Shadow under the Real Body. Again, we want to see an upside down hammer.

4. It requires confirmation the next day by a green candlestick, a large gap higher, or a higher Close. Also see the Shooting Star.

Psychology: Bulls take control into the Close and a higher second day Open or upward move will likely squeeze short sellers out.

Reliability: Low, until confirmed by the third session.

Inverted Three Buddha Base (a)

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. This is a classic Western "Inverted Head and Shoulders" pattern.

2. As shown on the chart, candlesticks #1 and #3 print as support at/near the same level. Candlestick #2 prints as a lower bottom.

3. The theory being, after bases #1 and #2 hold, Bears are forced out by a base forming at the #3 level - the same basic level as #1.

4. The support areas of candlesticks #1 and #3 are critical to this formation moving higher. Also see the Three Buddha Top.

Psychology: Japanese view this pattern as three attempts to push the base lower, but as support builds across areas #1, #2, and #3, buyers are expected to return in force.

Reliability: High.

Kicker; a.k.a. Kicking (a)

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, this is a strong signal suggesting that the market is now changing direction. A green Marubozu candle is followed by a sharply lower red Marubozu candle.

2. The first day's Open and the second day's Open are the same, however, Price movement is in opposite directions.

3. Price on the second day should never enter into the previous day's range.

4. The previous market trend is not important. Confirmation on the third day of a red candlestick, a large gap down, or a lower Close would be strong.

Psychology: A significant head-to-head sentiment change in a short period. The large candlestick size moving in opposite directions shows a dramatic change in trend sentiment. The larger these patterns are individually, the stronger the price reversal.

Reliability: High

Kicker; a.k.a. Kicking (b)

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, this is a strong signal suggesting that the market is changing direction. A red Marubozu candle is followed by a sharply higher green Marubozu candle.

2. The first day's Open and the second day's Open are the same, however, Price movement is in opposite directions.

3. Price on the second day should never enter into the previous day's range.

4. The previous market direction is not important in this pattern. Confirmation on the third day of a green candlestick, a large gap up, or a higher Close would be strong.

Psychology: A significant head-to-head sentiment change in a short period. The large candlestick size moving in opposite directions shows a dramatic change in trend sentiment. The larger these patterns are individually, the stronger the price reversal.

Reliability: High

Long Legged Doji (a)

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, this pattern shows a great amount of indecision has entered the market through the Doji at the top.

2. Prices traded well above and below the Open, however, the Close is virtually at the same level as the Open began. The upper and lower Shadows of the Doji are long and almost equal in length.

3. The pattern shows little change from the initial Open despite all the excitement and volatility during the day. The market has lost its sense of direction and a possible trend reversal is coming.

4. Confirmation is a second day that heads lower. Candlestick color is not important, although red prints would give a strong signal continuation. Also see Bullish Long Legged Doji.

Psychology: An indecision of Bulls and Bears battle at a common line at a critical trend top area.

Reliability: Medium

Long Legged Doji (b)

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, this pattern shows a great amount of indecision has entered the market through the Doji at the bottom.

2. Prices traded well above and below the Open, however, the Close is virtually at the same level as the Open began. The upper and lower Shadows of the Doji are long and almost equal in length.

3. The pattern shows little change from the initial Open despite all the excitement and volatility during the day. The market has lost its sense of direction and a possible trend reversal is coming.

4. Confirmation is a second day that heads higher. Candlestick color is not important, although green prints would give a strong signal continuation. Also see Bearish Long Legged Doji.

Psychology: An indecision of Bulls and Bears battle at a common line at a critical trend bottom area.

Reliability: Medium

Marubozu (a)

Bias: Bearish Reversal or Continuation of current bearish trend.

Identifying the pattern:

1. During an uptrend or downtrend, this forms when the Open price is equal to the High price of the day and the Close price is equal to the Low price of the day.

2. This shows that the Bears controlled the price action from the first trade to the last trade of the entire session.

3. A Marubozu should not have any Shadows. It reflects only one day’s trading with a potential to signal both a bearish continuation or a trend reversal. It must be used with other candlesticks to confirm.

Psychology: The Candle shows pure domination by Bears during the given session. This often teams with another candlestick to create a new formation, therefore the second day should be monitored closely.

Reliability: High, but must have confirmation during the next 1-2 sessions.

Marubozu (b)

Bias: Bullish Reversal or Continuation of current bullish trend.

Identifying the pattern:

1. During an uptrend or downtrend, this forms when the Open price is equal to the High price of the day and the Close price is equal to the Low price of the day.

2. This shows that the Bulls controlled the price action from the first trade to the last trade of the entire session.

3. A Marubozu should not have any Shadows. It reflects only one day’s trading with a potential to signal both a bullish continuation or a trend reversal. It must be used with other candlesticks to confirm.

Psychology: The Candle shows pure domination by Bulls during the given session. This often teams with another candlestick to create a new formation, therefore the second day should be monitored closely.

Reliability: High, but must have confirmation during the next 1-2 sessions.

Morning Doji Star

Bias: Bullish; Trend Reversal.

Identifying the pattern:

1. During a downtrend, this pattern begins with a long red Body before gapping lower.

2. At the base of the gap, a common Doji Body appears showing that Bulls and Bears have become even, diminishing the drive of Bears.

3. The third day is a green candle and represents the fact that the Bulls have now seized control.

4. An ideal Bullish Doji Star should show a Close that is at least halfway above the red candle of two days prior.

5. The optimal pattern should have Real Body gaps in the red and green candles where the Doji base candle is formed. See also the Abandoned Baby and Morning Star.

* Because there is a Doji in this pattern it is considered stronger than it's sister chart, the Morning Star.

Psychology: Market has slowed it's descent. Bulls begin to step on day two, and take control on the third day.

Reliability: High

Morning Star

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, this pattern begins with a long red Body before gapping lower.

2. At the base of the gap, a small Body appears showing the diminishing drive of Bears.

3. The third day is a green candle and represents the fact that the Bulls have now seized control. An ideal Bullish Morning Star should show a Close that is at least halfway above the red candle of two days prior.

4. The optimal pattern should have Real Body gaps in the red and green candles where the small bodied candlestick has formed.

Psychology: Market has slowed it's descent. Bulls begin to step on day two, and take control on the third day. See also the Abandoned Baby and Morning Doji Star.

Reliability: High

Piercing Line

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, a long red candlestick is followed by a gap lower. This suggests that Bears have retained control.

2. However, the second session selling does not continue. Price prints a Close at or near the Highs of the day, a green candle, and the green Real Body Closes well into the prior day’s red Real Body.

3. Confirmation should be on the third day in the form of a green candlestick, a large gap higher, or a higher Close. See also the Dark Cloud Cover.

Psychology: Bear's have the downtrend interrupted and Bulls now have a benchmark to place a stop, which is at the new low of the second day's green candle.

Reliability: High

Shooting Star

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, this suggests that Price may be approaching a top. It looks like its name, a shooting star falling from the sky.

2. A small Real Body characterized by a long upper shadow, which gaps away from the prior day's Real Body. Color of the Body is not important.

3. It requires confirmation the next day by a red candlestick, a large gap down, or a lower Close. Also see the Inverted Hammer and Evening Star.

Psychology: Once high in the sky, this star is falling back toward Earth.

Reliability: Medium, until confirmed.

Spinning Top

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, this pattern shows a great amount of indecision has entered the market. Price moves higher and then sharply lower during the session, or vice versa.

2. A Close then prints above the Open creating a small Real Body of either red or green color.

3. The actual length of the Shadows is not important. The small Real Body relative to the Shadows is what makes the spinning top.

Psychology: This resembles a child's toy top, spinning and looking for direction. Pattern implies weakness among the Bulls and is a warning about a potential change or interruption in trend.

Reliability: Medium, unless confirmed.

Three Advancing Soldiers

Bias: Bullish; Trend change Continuation

Identifying the pattern:

1. During a downtrend, this pattern is indicative of the opinion that the market has been at a low Price for too long (in the minds of traders/investors) and may be approaching a base, or is already at a base.

2. A decisive upward move is reflected by the first large green candlestick.

3. The next two days show further upward builds in Price due to increased effort from Bulls. All three Candles should be near equal in length.

4. Bearish mood in Price has been damaged and cannot be sustained any longer, forcing short position holders to cover their positions. See also Three Black Crows.

Psychology: Like much of the candlestick terminology, this pattern associates itself with the military. Persistence by Bulls has placed three fighting soldiers to rebuild upward Price stability.

Reliability: High

Three Black Crows

Bias: Bearish; Trend change Continuation

Identifying the pattern:

1. During an uptrend, this pattern is indicative of the opinion that the market has been at a high Price for too long (in the minds of traders/investors) and may be approaching a top, or is already at a top.

2. A decisive downward move is reflected by the first large red candlestick.

3. The next two days show further decline in Price due to profit taking. All three Candles should be near equal in length.

4. Bullish mood in Price has been damaged and cannot be sustained any longer, forcing long position holders to sell their positions. See also Three Advancing Soldiers.

Psychology: Persistence by Bears has placed three dark overhead signals driving Price stability lower.

Reliability: High

Three Buddha Top (b)

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. This is a classic Western "Head and Shoulders" pattern.

2. In the Japanese candlestick philosophy, the Three Buddha Top derives from the outlay comparison of a Buddhist temple. In the temple there is a large centrally positioned Buddha with smaller Buddhas (saints) found on both sides.

3. As shown on the chart, candlesticks #1 and #3 print as resistance at/near the same level. Candlestick #2 prints as a higher top (the large Buddha).

4. The theory being, tops are formed in candlesticks #1 and #3, with #2 actually acting as the failed breakout. #3's resistance then confirms the top.

5. The resistance areas of candlesticks #1 and #3 are critical to this formation moving lower. Also see the Three Buddha Base and Three Mountain Top.

* Although this pattern is an analogy to the Western 'Head and Shoulders" pattern, there is evidence that the Japanese Three Buddha patten was actively used over a hundred years before it's related Western "Head and Shoulders" sister.

Psychology: Japanese view this pattern as three attempts to push price higher, but as resistance builds across areas #1, #2, and #3, sellers are expected to return in force.

Reliability: High.

Three Inside Down

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, a Harami pattern (see Harami) is formed suggesting a top is in place.

2. The first two days of this three-day pattern forms the Bearish Harami, and the third day confirms the reversal from it's red candlestick Close.

3. A new three-day Low is placed in the chart and the Three Inside Down is now confirmed. See also Three Inside Up.

Psychology: Tight patterned bearishness consumes the former bullish trend and drives price lower.

Reliability: High

Three Inside Up

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, a Harami pattern (see Harami) is formed suggesting a base is in place.

2. The first two days of this three-day pattern forms the Bullish Harami, and the third day confirms the reversal by the green candlestick Close.

3. A new three-day High is placed in the chart and the Three Inside Up is now confirmed. See also Three Inside Down.

Psychology: Tight patterned bullishness consumes the former bearish trend and drives price higher.

Reliability: High

Three Mountain Top

Bias: Bearish; Sideways Trend to Downside Reversal

Identifying the pattern:

1. This is a classic Western "Triple Top" pattern, a major formation.

2. Candlesticks #1, #2, and #3 show three attempts to push above the same general high price area. All have failed to do so.

3. The high point of candlestick #3, the third mountain, should be confirmed with a bearish candlestick immediately following it. Examples would be a Dark Cloud Cover, Doji, or a bearish Marubozu candlestick.

Psychology: Japanese view this pattern as three attempts to push price higher, but as resistance builds across candlesticks #1, #2, and #3 without further progression higher, sellers are expected to return in force.

Reliability: High.

Three Outside Down

Bias: Bearish; Trend Reversal

Identifying the pattern:

1. During an uptrend, the first two days of this three-day formation print a Bearish Engulfing (see bearish Engulfing) pattern.

2. The third day confirms the reversal by printing a red candlestick Closing with a new Low print for the last three days.

3. The Harami (see Harami) is the first indication that the trend has stopped, noted in the first two candles.

Psychology: Bears take over the trend by completely engulfing the amount and size of orders placed by Bulls. See also Three Inside Down.

Reliability: High

Three Outside Up

Bias: Bullish; Trend Reversal

Identifying the pattern:

1. During a downtrend, the first two days of this three-day formation print a Bullish Engulfing (see bullish Engulfing) pattern.

2. The third day confirms the reversal by printing a green candlestick Closing with a new High print for the last three days.

3. The Harami (see Harami) is the first indication that the trend has stopped, noted in the first two candles.

Psychology: Bulls take over the trend by completely engulfing the amount and size of orders placed by Bears. See also Three Inside Down.

Reliability: High

Three River Bottom

Bias: Bullish; Sideways Trend to Upside Reversal

Identifying the pattern:

1. This is a classic Western "Triple Bottom" pattern, a major formation.

2. Candlesticks #1, #2, and #3 show three attempts to push below the same general support base price area. All have failed to do so.

3. The low point of candlestick #3, the third river, should be confirmed with a bullish candlestick immediately following it. Examples would be a bullish Kicker, Doji, or a bullish Marubozu candlestick.

Psychology: Japanese view this pattern as three attempts to push price lower, but as support builds across candlesticks #1, #2, and #3 without further progression lower, buyers are expected to return in force.

Reliability: High.