Candle Pattern by NickB (Part 2)

In this article, I am going to explain the importance of viewing candle patterns as a whole and not just as a single pattern. I will also explain a few simple concepts on using candle patterns together.

Forget Perfect Reversals

When you start trading reversals you’re going to notice that very few reversals are actually perfect. Looking for a perfect trend followed by a perfect candle and a perfect reversal can work but do you really want to take a trade only once a month?

Reversal trades can be taken even when the formations are not perfect.
If you remember, in the last article in this series, I talked about understanding that candles represent the struggle between the bulls and the bears. If you look at these imperfect reversals in this way you can clearly see why it’s a reversal and why you should enter. Just because it does not look like a text book reversal doesn’t mean it won’t work.

I took one of these imperfect looking reversals today and I walked away with 93 pips.

Let’s take a look at some of these reversal patterns.

continues..