Tip:
Highlight text to annotate it
X
Candle Pattern Stages
If traders have to rely on the candle patterns for their investment decisions, they must
know all the basic things about the candle patterns and their stages. They have to possess
the basic ideas on which pattern they should emphasize on or they should ignore.
There are 3 basic pattern stages. The first stage is the �gTrend�h. The prerequisite
of any candlestick pattern is the price should be in a trend. It can be in a uptrend or downtrend,
but without a trend the candle patterns cannot be predicted. The second stage is the pattern
included in that trend. Blindly following just the pattern without noticing the trend
can actually be a harmful decision. So a candlestick can only be predicted properly if they are
included in a trend. The third stage of the candle pattern is the confirmation of the
pattern. Every pattern has its own confirmations signs. Traders have to find those signs to
confirm the pattern and then predict the situation. The patterns are commonly bearish, bullish
or continuation patterns. A bearish pattern comes after an uptrend and closes with a downtrend.
A bullish pattern situates exactly in the opposite condition. It starts with a downtrend
and closes with an uptrend. A continuation pattern is most of the time observed closely
by the traders as there is a huge risk in investing in this kind of situation. Only
experts can predict this type of situation correctly. Many people confuse the reversal
patterns in a prediction that it will always turn into the opposite trend. But I reversal
patterns, the market can reverse or simply continue the price they were possessing before.
It�fs not always about the opposite trend. Before starting investing according to candlestick
pattern, traders should know that candlestick patterns can only influence the market for
a short time, so there is no surety that the patterns can be 100% accurate at the time
of your investment.