![]() ![]() In the chart above, the price starts moving sideways right after these reversal candlestick patterns appear. Although in fact these candles always indicate just one thing: the change in the mood of market participants. There are 2 reversal signals on the chart: a shooting star (red arrow) and a hammer (green arrow).īoth signals can be interpreted as reversal signals. And we’ll just show you how it looks on the chart: Now, read this last passage again, try to comprehend and visualize it in your head as you read it. Trend changes usually occur slowly, in stages, as the underlying psychology shifts gears.” Hearing that term may lead you to think of an old trend ending abruptly and then reversing to a new trend. “The term “reversal pattern” is somewhat of a misnomer. In his book “Japanese Candlestick Charting Techniques: A Contemporary Guide to the Ancient Investment Techniques of the Far East” Steve Nison writes: ![]() This is exactly the knowledge base every trader needs to be successful. How to open and close positions based on these patterns.How to interpret candlestick patterns correctly.We’ve prepared the top 6 tips on how to trade candlestick patterns. 3 Close positions based on candlestick signals.1 Not a “reversal”, but a “trend change”. ![]()
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March 2023
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