Candlesticks Formation A Simple Setup
Candlesticks Formation A Simple Setup
Let's explore the psychology behind this setup:
Initially, there's an overall uptrend. The first candle is a white bullish engulfing candlestick, followed by two hammer candlesticks, with a doji candlestick indicating indecision in between. These three candles can be considered inside bars since they are contained within the previous bullish candlestick. Then, the fourth candle is a black engulfing candlestick, which is proof as confirmation for the downtrend."