Downside Gap Three Methods

The Psychology
In a downtrend a gap simply gets filled. As long as the black candles have higher volume than the white, the one white profit taking day for the shorts shouldn't be a big concern. The downtrend should continue if indeed the stock is as weak as it appears.


Identification
A long black day is followed by a second long black day that gaps in the direction of the trend. The third day is white and fills the gap between the first two days.

Pattern: continuation
Reliability: moderate


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