This is not a standard candlestick pattern. It is simply the stop loss compliment of all the confirmed bearish patterns. The conditions for the activation of the Bullish stop loss are two consecutive highs or a close above the stop loss level of a recently confirmed bearish pattern.
1. A bearish pattern is detected and its confirmation and stop loss levels are established.
2. The pattern then is confirmed and a SELL or SHORT signal is issued.
3. Prices either close once above the stop loss level or test highs above the stop loss level in two consecutive days.
4. The Bullish stop loss is triggered.
Pattern Requirements and Flexibility
All bearish candlesticks are accompanied by a specific stop loss level which becomes active when the pattern is confirmed. A bearish confirmation consequently may lead to a bearish signal such as a SELL or SHORT signal. Following the bearish signal if prices go up instead of going down and close or make two consecutive daily highs above the stop loss level while no bullish pattern is detected then the stop loss is triggered. Once triggered the stop loss level of the recently confirmed bearish pattern starts acting as the confirmation level of a bullish pattern itself. The system then seeks a bullish confirmation to issue a BUY signal. Prices must cross above the stop loss level for the bullish confirmation of the triggered stop loss.