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For today's chart we've identified a variation of an intriguing candlestick pattern known as an evening star. This pattern is often used by traders to predict a change in the direction of the trend. It is created by finding a series of three candlesticks with the following characteristics:

1. The first bar is a large green bar (up day) located within an uptrend.
2. The middle bar is a small-bodied candle (up or down) that closes above the previous bar.
3. The last bar is a large red bar (down day) that opens below the middle candle and closes near the center of the first bar's body.

As you can see from the middle bar's body in the chart below, this is not the textbook pattern. However, it is still interesting because the middle bar is known as a dragonfly doji (when an intraday sell-off occurs and the open and close are equal to the high). This type of candlestick is rare, but when identified it also suggests a reversal in the direction of the trend. The combination of these two candlestick patterns and the upcoming resistance of the 200 DMA may be a signal that the bears are getting ready to push IFLO lower.


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