During a decline, this candlestick pattern usually changes the market's short-term trend from down to neutral. In this case, with the RSI below 40% on this time frame, the likelihood of a reversal from oversold territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Technically oriented position traders may use this signal to liquidate shorts, sell puts, and move down stops.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.