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Falling Three Methods
Posted By: TradersLog
This Japanese Candlestick chart formation shows the market is pausing before continuing a downtrend. In technical parlance this is described as a bearish continuation pattern. A long black body is followed by three small body days, forming a short uptrend, however each is fully contained within the range of the high and low of the first day. This suggests declining confidence on the part of the bulls. On the fifth day, the sellers dominate and the market closes at a new low.
For a complete printable reference see also: Japanese Candlesticks PDF Ebook
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