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Downside Gap Three Methods Bearish


Pattern: Continuation
Trend: Bearish
Reliability: Moderate

How to Identify it

  • Two long black days occur with a gap between them
  • The third day is a white day that fills the gap between the first two days

What it Means

A downtrend is followed by two long black days with a gap downward between them. The third day is a white day, but one that closes the gap between the first two. This should be seen as support for the downward trend.




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