The lesson on YouTube
Watch. Then work through the idea.
Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.
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What is actually happening?
A teaching version follows three stages: a large first body, a smaller middle body, and a third close back into the first body. Stricter traditional definitions can require separation around the middle body. A continuous-market adaptation is a different test, not proof that missing gaps occurred.
Guided example · Adapted three-candle recovery · synthetic bars
Measure the three-candle recovery
Use the first body midpoint as the fixed recovery threshold in this adapted example.
Restart & example assumptions
Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.
For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.
Make the conditions explicit.
Declare the session treatment, body-size threshold and recovery threshold. This article uses a gap-free adapted example and does not label it a strict gap formation.
For the exercise, compare the third close with the midpoint of the first body. Establish the smaller middle body numerically.
If the required recovery threshold is not reached, that particular rule did not qualify. Do not lower the threshold after seeing the third candle.
The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.
What can this cost?
A three-candle observation can leave a worse available entry than an earlier candle. Recognition alone does not define a protective stop or quantity.
How the idea can fail.
After the adapted recovery, a later close below the reference low can undermine the bullish hypothesis. The third close is evidence, not certainty.
Practical habit
Write “gap-free adaptation” in the journal rather than combining it silently with strict gap examples.
Go one level deeper
Evaluate an evening-star mirror under equally explicit rules; do not assume bearish and bullish samples behave identically.
Check your understanding
The adapted rule qualifies, but a strict required gap is absent. What can you claim?
Further reading & boundaries
These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.
Editorial revision: 13 October 2026 · Synthetic data · Educational use