hook reversal

Definition

A candlestick reversal signal that is particularly strong when there has been a previous strong trend. This is actually a type of extreme Harami candlestick pattern. It has a lower high and a higher low than the previous day. The second day's open and close should also be very near the open and close of the previous day, but within the body of the candle. In an uptrend, the second day's candle should be black or filled. In a downtrend, the second day should be white.
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