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The first inside bar of the bearish series has a lower shadow and is on a relative low of at least 20 bars. Such a pattern is often formed by multiple bars after a bearish trend.
How does the price move?
- bearish trend and reaching a relative minimum. Usually this minimum is formed by a bearish bar, similar to a doji with a lower shadow;
- the price rises quickly ( bullish outside bar );
- the price shows a new indecision with the inside bearish bar leaning on the close and the outside high;
- the price falls quickly to reach and slightly exceed the relative minimum recorded previously and rises quickly as well. In my case I represented the example with a bullish inside with a very long lower shadow and that does not exceed the maximum of the inside and the outside;
- the price exceeds the maximum and rises quickly.
Sometimes the last 2 points are merged.
- long when the maximum of one of the 3 bars is exceeded;
- stop loss on the minimum of the inside, on the minimum of the relative minimum or on the closing of the inside;
- take profit as before.