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Absorption
Absorption is a frequent reversal pattern on the chart, which consists of 2 candles. The body of the second candle must completely absorb the body of the first candle, and the price direction after the pattern depends on the previous trend and the colours of the candles.
The absorption pattern must fulfil three criteria:
1. There must be a pronounced upward or downward trend in the market, at least short-term.
2. The body of the second candlestick must overlap the body of the first candlestick (in this case, the shadow absorption may not occur).
3. The colour of the second body must be different from the first. An exception is possible only if the first candle has such a small body that resembles a doji or is a doji. Thus, if after a long downtrend a tiny white body is absorbed by another white body, but a very large one, we can talk about a reversal signal at the base. In an uptrend, the absorption of a very small black body by a large black body will be a reversal signal at the top.
It is also important to wait for a confirming candle, which will give us a signal to enter.
P.S For example, we have an uptrend, you have waited for a pullback and then the reversal towards the global trend movement begins. A "takeover" pattern is formed - this is a good point to enter the position
