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CHECKMATE
Checkmates occur when price becomes locked in a narrow trading range before a reversal in direction/trend. Therefore, we have the BEARISH CHECKMATE & the BULLISH CHECKMATE.
1. BEARISH CHECKMATE: This is when a bullish trend meet a deadlock (resistance) that is tested & rejected due to the bulls not being able to hold the pressure at this level. This is indicated by a long wick showing the point where the bulls cannot push the price beyond. The price would continue to trade within this range, until a long bearish candle breaks out indicating a bearish reversal. As an entry signal this pattern requires one or two strong bearish bars.
2. BULLISH CHECKMATE: This is a direct opposite of a bearish checkmate. Here a downward trends meets a support rather than a resistance. The long wick indicating where the Bears cannot push the price beyond. The price would trade within the range until a bullish candle breaks out indicating a bullish reversal. As an entry signal this pattern requires one or two strong bullish bars.
