Second candle: Small, can be a doji or an inverted hammer, indicates weakening buying pressure.

- Third candle: Bearish (closes below the open), partially overlaps the body of the first candle and indicates the beginning of a downward movement.

Entry into the trade:

- Enter at the open of the next candle after the close of the third bearish candle.

- Stop-loss: Set slightly above the high of the second candle (or the last local high).

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Signal confirmation:

- Volume: On the third candle, volume should increase, confirming the trend reversal.

- Additional indicators: RSI or MACD can be used to confirm divergence or overbought/oversold conditions.

- Support/resistance levels: Reversals often occur near key levels.

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Example of the strategy in action:

1. In a down market:

- The first candle shows strong selling pressure.

- The second candle is small, forming near support.

- The third candle breaks upward, demonstrating buyer strength.

- Entry into a long position at the open of the next candle.

2. In an up market:

- The first candle is a strong bullish candle.

- The second candle indicates a slowdown.