I have just exit my crude shorts around 53.50 levels & what a journey it was. Those who did not check my earlier post on how I manage to pick top of Crude oil, please Check the post here. Crude Oil Reversal
In this Article, I would point out few important patterns in Candlesticks against the trend, that giveaway to complete or short term reversals. Usually, they are trapped levels to trapped traders in opposite. directions and when they occurs or revisit, there are definitely rejection for short term or even on long term. You need to real the top down analysis i.e Chart from pattern occurence to the the lowest level which show some hints of price getting compressed or retesting with Fakeouts.
Why every Candlesticks pattern is used to trap market
This probably would be a hardest of statement to digest. Every Candlesticks patterns does not work, but yes, Reversal patterns are more likely to rely on but not immediately after they occur. But after the occurence & When and how much price reverses after the pattern occurs.
*Also Read :- How I manage to pick the exact top in WTI Crude oil
Strong follow throughs after pattern occured, are the one to mark & this is the first thing you need to note down, when planning any trade opportunity. Then you should mark the level with nearest support or resistance which give away to strongest rise or even decline. That is the reason why I don’t bother testing charts every day in and out, but rely on pattern occur & they watch out the price action next following days.