Single candlestick pattern can reverse the previous trend.
Do you think that a single candlestick pattern can reverse or change the previous trend ??
There are two main trends in the market, uptrend, downtrend, and there is also a trend where the market moves in a range and goes nowhere.
Now the question we have is, if the market has to change its current change, can it be done in a single trading session, the answer is no for sure, such events happen rarely and consider as an exception, normally markets before changing the trend experiences price fluctuation, it creates ranges, sees changes in volatility, sometimes volatility contracts sometimes expands and all these price behaviours then led to a trend change.
These price behaviours are termed as patterns because these price behaviour often repeats and to identify them easily again, traders had given them different names.
These patterns are further described as reversal patterns and continuation pattern.
Patterns that results in the continuation of the previous trend is called as continuation patterns such as flag pattern, pennant, triangles, cup and handle.
And the patterns that result in a trend change is called as reversal patterns, such as head and shoulders, double bottom, double top, broadening triangles.
There are two main trends in the market, uptrend, downtrend, and there is also a trend where the market moves in a range and goes nowhere.
Now the question we have is, if the market has to change its current change, can it be done in a single trading session, the answer is no for sure, such events happen rarely and consider as an exception, normally markets before changing the trend experiences price fluctuation, it creates ranges, sees changes in volatility, sometimes volatility contracts sometimes expands and all these price behaviours then led to a trend change.
These price behaviours are termed as patterns because these price behaviour often repeats and to identify them easily again, traders had given them different names.
These patterns are further described as reversal patterns and continuation pattern.
Patterns that results in the continuation of the previous trend is called as continuation patterns such as flag pattern, pennant, triangles, cup and handle.
And the patterns that result in a trend change is called as reversal patterns, such as head and shoulders, double bottom, double top, broadening triangles.
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