Exact formation
Large bearish body followed by a small bullish body contained entirely within the first.
What is happening in the market
The selling amplitude contracts sharply; suggests pause, not confirmed buyer control.
Where it matters
After a recognizable fall, ideally in support.
How to confirm it
Break of the high of the inner candle and after the high of the mother candle.
When it is invalidated
Close below the low of the mother candle.
Common mistake
Treat the squeeze as a confirmed reversal before the price breaks out of the parent range.