A small candlestick body of either colour follows a long white candlestick.

The bullish rally is losing its strength as shown by the presence of the small candle which is contained by the previous long body.

The reluctance of the market to move higher, and the presence of the pattern at the top of the rally, signals possible bearish implications.

The long black body that follows, extending below the second candle, confirms the bearish reversal.

After a prolonged rally to the upside, traders continue to trade in the direction of the prevailing trend until the market enters a phase of uncertainty, as traders are not willing to move the market in either direction at the moment.

The fact that price action has been contained within the previous session’s open and close reveals reluctance to move higher – and a possible bearish reversal is indicated.

The long black body that follows confirms that bears are in control and selling pressure overcomes buying pressure.

Entering short positions, sellers drive the market lower to eventually close lower than the previous session.