Darren Winters of Win Investing’s Reversal Type 4:
Darren says “My fourth reversal type is the Bearish Three Inside Down – once again this formation begins with a large up move but is then followed by an inside trading day with a very small range. Confirmed with another bearish day with a close at or below the lows of the first trading day.”
Darren explains “This move starts of with large bullish price rise in anticipation of a news release from the underlying company or favorable economic conditions. The day closes at the top of its trading range indicating that trend is intact. The small wick at the top of the candle is most likely created by day traders closing their positions at the end of the trading day. – Darren Winters”
For Darren Winters of Win Investing.