Trading Patterns (Mini Guide)

Pattern 1: Large Bodies (Fast Expansion)

One candle expands 2-3× larger than recent candles

Signals acceptance, fast expansion, and continuation

One side dominates decisively in a single candle

✅ Good for momentum

❌ Bad for mean reversion

Pattern 2: Wicks Into Levels (Rejection)

Price pushes into a key level, wicks beyond it, and closes back inside

Signals rejection, absorption, and failed breakouts

The level holds and attackers become trapped

❌ Bad for momentum

✅ Good for mean reversion

Pattern 3: Consecutive Candles (The Grindy Staircase)

Multiple candles make steady higher highs / higher lows or lower highs / lower lows

No spikes or deep pullbacks, consistent progression

Dips get absorbed, and pressure remains one-sided

✅ Good for momentum

❌ Bad for mean reversion

Pattern 4: Choppy Price Action (Stalemate)

Price repeatedly rejects the same highs and lows

Neither bulls nor bears establish control

Price oscillates inside a range

❌ Bad for momentum

✅ Good for mean reversion