Technical Definition
A two-candle bearish continuation pattern where a bullish candle is followed by a bearish candle that opens at the same price as the previous open and closes significantly lower, signaling that the downtrend is resuming immediately.
Buyers try to stop the fall for one session, but sellers reopen the market at the same level and continue the downtrend without hesitation.
Buyers attempt a temporary recovery.
Market Psychology
Trend
Market is in a clear downtrend Sellers are in control Rallies are viewed as selling opportunities
Bounce
Short covering appears Buyers gain temporary control Sellers remain patient
Smash
Market opens at the same level as prior open Sellers enter aggressively Price declines decisively
Pattern Anatomy
First Candle (Bullish)
Temporary counter-trend bounce.
Second Candle (Bearish)
Opens at same level as first open, closes significantly lower.
Shared Open
Psychological rejection level, sellers reset price to pre-correction level.
Pattern Rules
Appears within an established downtrend
Continuation context.
First candle is bullish
Counter-move.
Second candle is bearish
Resumption.
Both candles share the same opening price
The "Separating Line".
Second candle closes significantly lower
Strength.
Signal Confirmation
- Bearish follow-through after the second candle
- Price holding below the shared opening level
- Alignment with lower highs and lower lows
- Broader trend structure