✤ Setup Conditions:

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

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

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

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

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

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

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 has a breakout candle.

10. 4^th candle confirmation needed.

✤ Type

☛ Bullish Reversal

✤ Trend Context

☛ Appears at the bottom of a downtrend.

✤ Significance

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

1. First Candle:

☛ A long bearish (red) candle, representing strong selling pressure.

2. Second Candle:

☛ A small bullish (green) candle that is completely within the range of the first candle (like a Bullish Harami).

3. Third Candle:

☛ A long bullish (green candle that closes above the high of the first candle).

✤ Psychology

☛ Bears dominate initially (first candle).

☛ Bulls start gaining momentum (second candle)

☛ Bulls confirm control (third candle), leading to a potential uptrend.