✤ Setup Conditions:

1. 1^st candle’s close must be greater than 1^st candle’s open, it means 1^st candle is a bullish candle.

2. 2^nd candle’s close must be less than 2^nd candle’s open, it means 2^nd candle is a bearish candle..

3. 3^rd candle’s close must be less than 3^rd candle’s open, it means 3^rd candle is a bearish candle..

4. 2^nd candle’s high must be less than 1st candle’s high, it means 2^nd candle has a lower high.

5. 2^nd candle’s low must be greater than 1st candle’s low, it means 2^nd candle has a higher low.

6. 2^nd candle’s entire range must be less than entire range of 1^st candle.

7. 3^rd candle’s high must be greater than 2^nd candle’s high, it means 3^rd candle has a higher high.

8. 3^rd candle’s low must be greater than 2^nd candle’s low, it means 3^rd candle has a higher low.

9. 3^rd candle’s close must be greater than 2^nd candle’s high, 3^rd candle is a breakout candle.

10. 4^th candle confirmation needed.

✤ Type

☛ Bearish Reversal

✤ Trend Context

☛ Appears at the top of an uptrend.

✤ Significance

☛ Suggests a shift in market sentiment from bullish to bearish.

1. First Candle:

☛ A long bullish (green) candle, representing strong buying pressure.

2. Second Candle:

☛ A small bearish (red) candle that is completely within the range of the first candle (like a Bearish Harami).

3. Third Candle:

☛ A long bearish (red) candle that closes below the low of the first candle.

✤ Psychology

☛ Bulls dominate initially (first candle).

☛ Bears start gaining momentum (second candle)

☛ Bears confirm control (third candle), leading to a potential downtrend.