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 bullish reversal.
It forms at the bottom of a downtrend or near a support area.
It consists of two black candlesticks.
The decline continues to record lower prices as reflected by the presence of a long black candle. Next session is characterized by a smaller black body that is completely engulfed by the previous long black body, signaling weakness, setting the stage for a bullish reversal.
Category: Japanese Candlesticks