Bearish Downside Gap Three Methods

by · December 31, 2009

BEARISH DOWNSIDE GAP THREE METHODS PATTERN (BDGTMP)
appears when the market strongly goes downward

Characteristics:
1. Market is on a downtrend;
2. There are two long black sticks with a gap between them in Days 1 and 2;
3. Day 3 has a white stick distinguished with an opening within Day 2’s body; and
4. Day 3’s white body fills the gap between the first two days.

Brief Explanation:
The BDGTMP comes out when the market is moving strongly on a downward direction. The downward movement is extended further by one more day showing a gap in the direction of the downtrend. The opening on Day 3 is within the body of Day 2, and it manages to fill the gap. This is seen as a support for the downward trend.

Notes:
1. The BDGTMP has a strong similarity to the Bearish Downside Tasuki Gap Pattern
2. A confirmation is needed in the form of a black stick, a large gap down or a lower close on the next trading day to ensure that the downward movement will continue.