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Bearish Sanpo (falling three methods) PDF Print E-mail

Bearish Sanpo (falling three methods)

Reliability Rating: high

The idea behind the sanpo pattern is that no price movement moves straight up or down, there always exists some retracement before the movement makes a new high or low. Therefore this pattern is to indicate whether a trader should "pause" during the trend (a short term consolidation will occur with a direction opposite to that of the major trend).