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Abandoned Baby
Belt Hold
Breakaway
Concealing Baby Swallow
Doji Star
Dragonfly Doji
Engulfing
Gravestone Doji
Hammer
Harami
Harami Cross
Homing Pigeon
Inverted Hammer
Kicking
Ladder Bottom
Mat Hold
Matching Low
Meeting Lines
Morning Doji Star
Morning Star
Piercing Line
Rising Three Methods
Separating Lines
Side by Side White Lines
Stick Sandwich
Three Inside Up
Three Line Strike
Three Outside Up
Three Stars In the South
Three While Soldiers
Tri Star
Unique Three River Bottom
Upside Gap Three Methods
Upside Tasuki Gap

Concealing Baby Swallow
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Pattern: reversal
Reliability: high

Identification
The first two days are Black Marubozu days (open is the high of the day and the close is the low of the day). The following day is a black day that gaps in the same direction but trades up into the body of the second day. The final day is a Black Marubozu that gaps up and sells off to engulf the third day.

The Psychology
In a downtrend or within a pullback of an uptrend, the two consecutive Black Marubozus indicate the bears are in complete control. The gap down on the third candle is bearish and attempt #1 is made to rally the stock (as evidenced by the upper shadow). Attempt #2 comes on the next day’s gap up, but the stock sells off again to indicate the bulls are throwing in the towel. But this is why the pattern works. Once the bulls are given up, there are no more sellers, so the down trend stops. Once the shorts start to cover, there are no sellers to stand in the way of a bounce.

The bullish Concealing Baby Swallow is similar to the bearish Three Black Crows and bullish Ladder Bottom.