Squeeze Alert
A final pattern to examine among the many candlestick reversals is the squeeze alert. This is yet another unusual pattern in which a set of black candlesticks provides a bullish signal, and a set of white candlesticks is bearish.
The bullish squeeze alert consists of three sessions, each one opening and closing in the range of the previous session. Thus, each day’s range shrinks to smaller size in both opening and closing price. The first and third session are black, and the middle session’s color does not matter. The ideal squeeze alert is found at the bottom of a downtrend.
Key Point
Squeeze alerts are rare and unusual in the sense that they involve three sessions, all with declining real bodies sized within the range of the ...
Get A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
