#candlestick #patterns :
- Trend about to reverse
- Double top → Bearish reversal, expect a drop
- Head and shoulders → Three tops + neckline = danger zone
- Rising wedge → upcoming drop
- Double bottom → Expected quick bounce
- Inverted heads and shoulders → Upward breakout
- Falling wedge → upcoming bullish breakout
Continuation candlestick patterns:
- Trend taking a break
- Falling wedge → Upward breakout after a break
- Bullish rectangle → Sideways then up
- Bullish flags → Mini-triangle before the rally - Rising wedge → Beware of the trap. It often breaks down
- Bearish rectangle → Sideways then down
- Bearish flag → Short stop before further decline
Two-sided candlestick patterns:
- Breakout in either direction
- Ascending triangle → Flat top, increasing pressure - spike or decline?
- Descending triangle → Flat bottom, sellers are gathering
- Symmetrical triangle → Time for compression - watch for a breakout.
Professional advice for #traders :
1️⃣ Bounces = Trend tired. Time for a reversal.
2️⃣ Continuations = Trend still strong. Ride it. 3️⃣ Two-sided = Uncertainty. Wait for confirmation of the breakout.
