Concealing Baby Swallow Bullish

 

Pattern: Reversal Trend: Bullish Reliability: High

 

How to Identify it

• The first two days are Black Marubozu days
• The third day is black day that gaps downward, but trades into the body of the second day
• The fourth day is a Black Marubozu day that engulfs the third day

What it Means

In a strong downtrend, highlighted by two consecutive Black Marubozu days, a gapping black day trades into the body of the previous day. The last day, another Black Marubozu, shows investors selling off, as it closes at a new low. This provides an opening for the shorts to cover their positions. A bullish reversal should ensue.