This pattern appears at the end of a bearish cycle.

The number 1 candle is the Inverted Hammer candle. The Inverted Hammer candle has a shadow twice as long as the real body – possibly longer. The Inverted Hammer candle can be a red candle (bearish candle) or green candle (bullish candle).

Candle 2 is a confirmation candle. There are 2 cases below:

• If candle 2 is a green candle (bullish candle), we will execute a BUY order on the next 3 candle.

• If candle 2 is a red candle (bearish candle), we will stay out of the market.

Candle 3 is the entry candle. We enter a buy order when the 3rd candle opens and close the order when the 3rd candle closes.