Exact formation
Bullish candle followed by a bearish one whose body completely covers the previous body.
What is happening in the market
The supply absorbs the previous advance and ends up dominating a broader range.
Where it matters
After a rise or rebound, especially next to resistance.
How to confirm it
Continuity under the minimum of the set.
When it is invalidated
Close on the high of the two candles.
Common mistake
Demanding that shadows be covered or ignoring that bodies are not actually wrapped.