Bullish One White Soldier

Aussie Bulls can be regularly wrong - as technical analysis is. But I still find this interesting.


MOBILE EMBRACE
Last Signal: STAY IN CASH
Last Pattern: BULLISH ONE WHITE SOLDIE..
Last Close:
0.1800
Change:
+0.0200
Percent change
+12.50%

Signal Update
Our system’s recommendation today is to STAY IN CASH. The previous SELL signal was issued on 09/01/2015, 4 days ago, when the stock price was 0.1700. Since then MBE.AX has risen by +5.88%.
Market Outlook
The market is finally giving hints of a bullish resurgence. Today a bullish pattern is detected.

Definition
This pattern appears in a downtrend and consists of a black candlestick and a white candlestick in which the white candlestick opens above the preceding day’s close and closes above its open. The pattern looks similar to the Bullish Harami pattern. The only difference is that the second day closes higher, which stops the engulfing of the white body by the preceding black body.

Recognition Criteria
1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. The white body that is formed on the second day opens higher than the first day’s close and closes higher than the first day’s open.

Pattern Requirements and Flexibility
The Bullish One White Soldier consists of a black candlestick followed by a white candlestick. The length of the candlesticks should not be short. The second day opens above the close of the preceding day and the close crosses above the opening price of the first day.
Trader’s Behavior

A downtrend is in progress and the strong black candlestick seen on the first day increases the bearishness that is already present. As the second day opens higher than the close, the short traders are alarmed. Prices rise to the point where the close crosses above the previous day’s opening. The downtrend is damaged. If prices keep on rising on the following days, a major trend reversal takes place.
Buy/Stop Loss Levels

The confirmation level is defined as the last close. Prices should cross above this level for confirmation.

The stop loss level is defined as the last low. Following the BUY, if prices go down instead of going up, and close or make two consecutive daily lows below the stop loss level, while no bearish pattern is detected, then the stop loss is triggered.