This Japanese candlestick pattern is similar to a Western rounding bottom. A window to the upside confirms this pattern. It is the counterpart of the dumpling top.
Normally it should be a signal of Bullish reversal of the current Trend.
- It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern.
- The Pattern starts during a Downtrend, then it becomes a “Sideways” Trend (That represents the indecision of the Markets); at the end of the Pattern, there is a reversal in the direction of the Trend and it becomes an Uptrend.
- This Pattern is quite rare; is important that there is a Gap Up after the “Sideways” Trend and just before the start of the Uptrend (To obtain further confirmation of the reversal of the Trend, as the Pattern suggests).