FRED TAM'S BLACK INSIDE OUT DOWN

 FRED TAM'S BLACK INSIDE OUT DOWN:-

                 

DEFINITION:-

*Fred Tam’s Black Inside Out Down is a two-day bearish reversal pattern identified by the author. 

*Twoopposite-coloured real bodies distinguish it. In a bearish scenario, the second day’s black real body opens within the first day’s white real body but closes below the first day’s open. 

*The shadows are not important here.

RULES FOR ENTERING A TRADE:

1. An uptrend must be in progress.

2. The first day must be a white candle.

3.The second day opens within the first day’s white real body, declines, and closes below the white candle’s real body. In other words, the second day’s real body partially engulfs the first day’s real body. The colour of the second day is black. 

4.This pattern is a variation of the Bearish Engulfing. The difference between these two patterns is that in the Bearish Engulfing, the second day opens above the first day’s white real body whereas in this pattern, it opens within the first day’s white real body.