Exact formation
The second candle has a lower high and a higher low than the mother candle; its entire range is within.
What is happening in the market
Volatility contracts and the market enters temporary equilibrium; It does not have its own address.
Where it matters
After impulse, in consolidation or near level. The direction depends on structure and breakdown.
How to confirm it
Close outside the range of the mother candle, ideally with volume/range expansion.
When it is invalidated
False break and close on the opposite side.
Common mistake
Confuse it with harami: inside bar compares full shadows; harami compares bodies.