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This pattern consists of only one candle, what is significant about this pattern however is that the candle has no tail below or above the body.
It is created when the opening price is the same as the high price and the closing price is the same as the low price of the day.
This pattern reflects the fact that the bears are in a strong position; they have taken control of the market to such an extent that they have been able to sustain control all day, which has resulted in the price equating to the open and close price.
This therefore would indicate a very bearish signal.
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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.
