How to Identify it
· The first day is a long white day continuing in an uptrend
· The second day is black and gaps up
· The third day is also black and engulfs the previous black day, but still closes above the first day
What it Means
In an uptrend the market falters, but still closes above the previous day’s close. The next day, it falters more but remains above the first day’s close. This is a signal that the market can no longer hold its position and is in for a bearish ride .