The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!
A Japanese candlestick pattern signaling a bearish reversal.
It forms at the top of an uptrend or near a resistance area.
It consists of four candlesticks.
The first two long black bodies confirm the strength of the downward movement. Third black candle is smaller. It gaps lower, recording a new low but also produces a relatively long upper shadow extending into the body of the previous Marubozu. The last session is a long black candle that completely (including shadows) engulfs the previous candlestick range thus recording a new low.
Category: Japanese Candlesticks