Concealing Baby Swallow
- Type: Reversal
- Relevance: Bullish
- Prior Trend: Bearish
- Reliability: High
- # of Sticks: 4
Definition:
This is a more complicated pattern where two consecutive Black Marubozu candles (the second, first gapping up to the middle of the first and then closing below the first and at the low) are followed by a gap down and close at the low but contains a long up shadow showing trading well into the prior candle. The last candle had gapped higher but showed weakness and eventually closed at the low and below all 3 prior candle's trading. This pattern shows an attempt for reverse the pattern and short would likely start closing their position. (Also please note a Marubozu can be an up or down candle but is generally long and has no shadows.)