How to identify...
1. Long white day where the open is equal to the low.
2. No lower shadow.
Similar pattern(s)... *
Marubozu
Psychology...
A significant gap down occurs. The remaining price action for the day occurs to the upside. This triggers a buying spree. Shorts cover their positions due to concern over this price action.
How to identify...
1. Long black day where the open is equal to the high.
2. No upper shadow.
Similar pattern(s)...
Marubozu
Psychology...
A significant gap up occurs. The remaining price action for the day occurs to the downside. This triggers new short positions to be taken. Concern over this price action re-enforces the selling.