A long white candlestick forms in the direction of the uptrend, confirming that the rally is still in force.

The next session gaps higher, forming a small candle that signals indecision.

A long black candle that follows pushes the market lower, well into the long white candle’s body, and, more specifically, below its midpoint – indicating a bearish reversal.

Traders enter the market with long positions pulling prices even higher in the direction of the prevailing trend.

The presence of a small candlestick at the top signals indecision and weakness amongst the bulls, who are running out of steam.

Eventually, sellers’ pressure overcomes buyers’ pressure and the market rebounds and closes in the lower area of the long black candlestick.