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To evaluate the performance of the pattern in your stock exchange within the context of other global markets, please refer to the table below. Locate your stock market to see its ranking among others. This will provide insights into the pattern’s strength and reliability, aiding you in your buying and selling decisions.
BULLISH SQUEEZE ALERT
Definition
This is a three-day bullish reversal pattern. It was developed to recognize frequent instances where prices can break to the upside following this formation, especially when preceded by a strong downward move.
Recognition Criteria
1. The market is currently defined by a dominant downward trend.
2. A black candlestick appears on the first day.
3. On the second and third days, each candlestick has lower highs and higher lows compared to the previous day.
4. The color of these candlesticks is not significant, nor is the size of their bodies.
Pattern Requirements and Flexibility
The first candlestick should be a black candlestick. The subsequent two candlesticks can be of any color and length, but they must have consecutively lower highs and higher lows.
Trader’s Behavior
The key takeaway from the Bullish Squeeze Alert is that the downtrend has stalled, indicating that some base or stability has finally been established.
Buy/Stop-Loss Levels
The confirmation level is defined as the top of the last day's candlestick body. For confirmation, prices should move above this level.
The stop-loss level is set at the lower of the last two lows. After a BUY signal, the stop-loss is triggered if prices decline instead of rising and either close below the stop-loss level or record two consecutive daily lows below it, without any bearish pattern being detected.