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 multiple candlesticks.
At the end of an uptrend volatility tightens as the market is forming a topping pattern. Short bodies substitute the long white bodies. Finally, a long black candle breaks below the pattern with a gap to complete the pattern.
Category: Japanese Candlesticks