Inverted Cross Pattern Introduction:
Bullish Pattern. In a downtrend, a medium or large bearish candle appears, followed immediately by a doji candle that is entirely within the body of the previous bearish candle. This pattern is called a bearish engulfing doji, also known as a doji pregnancy. Buy reference point: If the bearish engulfing doji appears and the next day the stock price continues to rise and surpasses the doji's body, a buying opportunity arises.
Stop-loss reference point: The lowest point of the pattern.
