This pattern is something I've been testing for some time now with a live account using a small amount of risk.
The high of the bear candle (found @0.67540) and the low of the bear candle (@ 0.66862) marked by the highlighted red box, measuring roughly 678 points from top to bottom.
What follows after a high volume bear movement are three white (bull) candles, with each proceeding candle closing higher than the previous one and typically reaching around 50% of the entire bear movement (highlighted by the red resistance line @ 0.67214, forming a hook-like pattern.
What's the outcome?
Prices tend to move further to the downside reaching the low of the bear movement @ 0.66862 and even further if prices close below the support line.
Here are the figures:
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BEAR MOVEMENT:
High: 0.67540
Low: 0.66862
Difference: 678 points
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3rd Bull Candle Close: 0.67214
Last Bear Candle Low: 0.66862
Difference: 352 points
---------------------------------
CONCLUSION: Bearish Bias
With the kiwi still ranging inside of its descending channel, and with prices currently near the resistance trend line,
expect prices to retest around the 0.67200 area before moving further to the downside.
Have you seen this pattern before? If you have comment below!
The high of the bear candle (found @0.67540) and the low of the bear candle (@ 0.66862) marked by the highlighted red box, measuring roughly 678 points from top to bottom.
What follows after a high volume bear movement are three white (bull) candles, with each proceeding candle closing higher than the previous one and typically reaching around 50% of the entire bear movement (highlighted by the red resistance line @ 0.67214, forming a hook-like pattern.
What's the outcome?
Prices tend to move further to the downside reaching the low of the bear movement @ 0.66862 and even further if prices close below the support line.
Here are the figures:
--------------------------------
BEAR MOVEMENT:
High: 0.67540
Low: 0.66862
Difference: 678 points
----------------------------------
3rd Bull Candle Close: 0.67214
Last Bear Candle Low: 0.66862
Difference: 352 points
---------------------------------
CONCLUSION: Bearish Bias
With the kiwi still ranging inside of its descending channel, and with prices currently near the resistance trend line,
expect prices to retest around the 0.67200 area before moving further to the downside.
Have you seen this pattern before? If you have comment below!