The pattern of Japanese matching Low candles is similar to the Homing pigeon pattern. The exception is that both days of these two days of pattern closure are the same low level. Since both days of black (or red) candles close to the same level, this low-profile signal indicates that it has touched the farm after a long trend. See the criterion for the pattern of Japanese candles matching Low below.
Low profile criterion
The body of the first candle is black (or red) and the body of the second candle is black (or red).
The downward trend is evident for a good time period and a long black (or red) candle happens at the end of the trend.
The second day opens higher than the closing of the previous day and closes in the same way as the previous day.
For an investment signal, a new confirmation is required to indicate that the trend is moving in the direction.
The psychology pattern behind the matching Low
After this in progress a strong downward trend, and after a long black (or red) candle happens, the bulls open the price higher at the price of the previous day. The shorts are worried and begin to cover, however, the bass players continue to carry enough control to close the price at the minimum of the day. I repeat that this minimum is the same as that of the previous day's closing. The psychological impact on the bass player is that the second day cannot close below the closing of the previous day and it is troubling that this is a level of support.
Throughout his investment career, Stephen Bigalow has directed his investment insight into developing improved methods for profiting from investment markets. His research covers all the basic and technical methods, verifying that the analyses of Japanese candles were superior to the other methods.
One of the biggest mistakes of investors is that price movements are based on fundamental reasons when in fact price movements are based on the "perception" of fundamental reasons. Japanese rice traders have discovered it centuries ago. Why do prices go down when good news is announced? The answer is in anticipation of these good news that was already incorporated in the price of action.
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