A is a visual pattern consisting of three that is interpreted as a bullish sign by technical analysts.
A forms following a downward trend and it indicates the start of an upward climb.
It is a sign of a reversal in the previous price trend. Traders watch for the formation of a and then seek confirmation that a reversal is indeed occurring using additional indicators.
The opposite pattern to a is the , which signals a reversal of an uptrend into a downtrend.
Can we expect a move .. please put your thoughts into comment.
Thank you so much.
We must not only consider Downtrend but must look at the Candlestick Pattern formed.
And Downtrend does not always means a big downfall, it can be a small retracement as well. "It is a sign of a reversal in the previous price trend."