|Unique Three River Bottom
The first day is a long black day, followed by a Homing Pigeon whose lower
shadow makes a new low. The last day is small and white, and closes below
the second day’s close.
In a downtrend or during a pullback within an uptrend, a black day occurs.
The second black day that has a long lower black shadow indicates the
possibility of an intraday washout of the bulls. Since the third day gaps
down, the bears are still thought to be somewhat in control, but the higher
close (inability of the bears to push the stock down) suggests the bearish
tone may be changing.