This is a three-day bullish reversal pattern. It was developed because of the frequent event where prices can break to the upside following this pattern, especially if the pattern is preceded by a strong downside move.
1. The market is characterized by a prevailing downtrend.
2. A black candlestick appears on the first day.
3. The second and third days each have lower highs and higher lows than the previous day. Their color is not important.
4. The sizes of the bodies of the three days do not matter.
Pattern Requirements and Flexibility;
The first candlestick should be a black candlestick. The other two candlesticks can be of any color and length but they should have lower highs and higher lows consecutively. This forms what other systems call an
ASCENDING PRICE WEDGE. Explosive moves can follow a price wedge like this.
What is important about the Bullish Squeeze Alert is that the downtrend has stalled and some base or stability has finally arrived.
great read on the chart...unfortunately our politicians in Washington dont look like they are going to cooperate. Today the rhetoric gout louder and I expect to tomorrow the mudslinging will be ridiculous. The good news is that once the mudslinging hits the high end of ridiculous, an agreement will be close..Hopefully the damage done by our politicians did/will not take the air out of the bioTech rally.
Wow. Either you lifted that off of some website, or you are a true adept at candlestick charting. I like the aspect of the ascending price wedge. Eric Muathe would talk about an ascending price wedge as a breakout pattern.
I think that the Cramer effect has played out. I also think the government shutdown #$%$ has passed. ACAD is still a great biotech firm that has retraced some explosive upside movement. It was a much needed correction.
I say ACAD moves significantly higher in the coming week.