The is one of the more popular and well known . It works very well as a reversal, performing that way 79% of the time.
How to spot this candle stick formation:
Number of candle lines should be two. Price trend leading to the pattern should be upward.
Look for a two candle pattern in an upward price trend. The first candle is GREEN and the second is RED. The body of the RED candle is taller and overlaps the candle of the GREEN body (Shadows are unimportant).
The third candle stick is another important one to keep an eye on, as it will give traders a valid entry to open a short position.
A close below the third candle stick is an automatic sell signal.
Breakdown price : 1.61962
Support 1: 1.61347
Support 2: 1.60853
Support 3: 1.60221
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Ideas published should not be referred to as an investment advice.