J-Hook pattern and Inverted J-Hook pattern
– Normally it should be
a signal of continuation of the current Trend.
– It occurs during an Uptrend;
confirmation is required by the candles that follow the Pattern.
– The Pattern starts
with a rapid increase in the Prices. (1)
– Then there is a Candlestick Pattern
that gives a bearish signal (So the Traders start to sell). (2)
– The prices fall,
then reach a level of “indecision”; at the end of this phase of indecision, there should
be a Bullish signal. (3)
– The prices start to rise
and they reach the Previous High (The one formed from the Phase (1) ). If the
prices keep rising, going above this High, there should be a new Uptrend in Prices.
– If the prices don’t go above the High,
the
Pattern has failed; in this case
the Pattern creates the
Double Top Pattern (A pattern from the Technical analysis).