A bearish continuation pattern: a long red candle, a few small rising candles held inside its range, then another long red candle.
The mirror of rising-three-methods. Small green candles drift up without exceeding the first candle's high, then a decisive red candle closes below the first candle's low.
The read is that the bounce attracted no real buying, and supply returned as soon as the pause ended.
Watch for the failure version: if the small candles exceed the first candle's high, the pattern is void and the market may be reversing rather than resting. That single rule, the pause must stay inside the impulse, is what separates a continuation pattern from the start of a turn, and it applies to flags and pennants as much as to candle sequences.
Original diagrams for the ideas on this page. Illustrative, not real market data.
The parts of a candlestick. One candle sums up a slice of time: the thick real body runs from the opening price to the closing price, and the thin wicks reach out to the highest and lowest prices traded. Colour tells you which way the body ran.
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