It consists of two candlesticks and represents the following sequence:
First candle: a long and bearish candle, the closing of which is below the opening. It indicates an existing bearish trend.
Second candle: A bullish candle that opens below the close of the previous candle (bearish) and closes above the middle of the body of this bearish candle. It indicates the possible beginning of a price reversal in the direction of a bullish trend.
The Bullish Clearance pattern in the clouds signals a possible trend reversal and provides the trader with a signal to open a buy position. However, as with any other pattern, it is necessary to take into account the market context, supporting indicators and other factors to make an informed trading decision.
It is important to note that the successful use of the Bullish Clearance pattern in the clouds requires skills and experience in technical analysis, as well as additional confirmation of the signal using other tools and strategies.
