Abbreviation:
Category: Candlestick Bullish Reversal
Input Parameters:
| Name | Range | Default |
| Opening Price | Open | |
| High Price | High | |
| Low Price | Low | |
| Closing Price | Close | |
Calculation:
= Downward Trend 2 bars ago
AND Long Black Day 2 bars ago
AND Short White Day 1 bar ago
AND Closing Price 1 bar ago < Opening Price 2 bars ago
AND Opening Price 1 bar ago > Closing Price 2 bars ago
AND (Closing Price 1 bar ago-Opening Price 1 bar ago)/(Opening Price 2 bars ago-Closing Price 2 bars ago)<0.7
AND White Body
AND Closing Price 1 bar ago < Closing Price
WHERE Downward Trend = (ExpAvg(Closing Price,9) < ExpAvg(Closing Price,9) 1 bar ago)
Discussion:
Very strong indication of a reversal from a bearish trend to a bullish trend.
For more details, refer to pages 111-114 of the book, CandlePower, by Gregory L. Morris (Chicago, IL, Probus Publishing Company, 1992, ISBN 1-55738-458-4). Note that CandlePower may no longer be in print and has been replaced by the book Candlestick Charting Explained : Timeless Techniques for Trading Stocks and Futures by Gregory L. Morris (ISBN 1-55738-891-1).