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This pattern consists of three candlesticks that represent each day. This pattern is normally seen at the top of an up trend.
One white big candle represented day 1, a small white candle representing day 2 and one large black candle representing day 3.
The pattern shows the reversal of a trend during a 3 day period, it starts off with a large white candle showing that the bulls are in control and the market is very bullish, the following day it gaps up but the trend is starting to change as there is not much activity.
On the third day there is confirmation of this reversal with a large black candle signifying that the bears have taken back control from the bulls and the market is now bearish.
Please click on picture above to get a larger picture
Most candlestick patterns should appear close to previous resistance or support levels depending on what type it is. You should only trade a candlestick pattern if it's near these levels.
Don't trade using these patterns if it's not at the top or bottom of a trend. These patterns appear a great deal so you have to make certain you only trade at the right level.
This is very important as you will end up over trading them and you will end up losing more money than you imagined.
