Break pullbacks and breakout tests
Breaks are one of the best chances that most traders look out for.
But as a trader, he or she should be very careful to detect any break pullbacks.
In many cases, the market usually has breakout tests before there is a real breakout.
A break pullback is a movement in the opposite direction just after the market prices breaks out.
On the other hand, the breakout tests are in most cases characterised by break pullbacks
and the trader should be very careful to distinguish this from a trend change.
Due to these break pullbacks and breakout tests, the trader should give the market time after
a breakout occurs so as to be able to detect the break pullbacks and breakout tests.
Failed final flags candlesticks
A failed final flag candlestick pattern occurs when the market prices have long trends that often form a trading range final phase,
which can be described as a flag that is a number of bars wide and it accelerates towards a new trend extreme and then starts to move
in the opposite direction (reverses), which finally becomes a trend reversal.
The failed final flag mostly comes after an end of a trend. Therefore, if it occurs, the trader should know that the current trend
has come to a stop and he or she should close all the open trades if any, and wait for the next trend to form for him or her to place a trade.
Failed final flags huge trend bar candlesticks
Failed final flags and the huge trend bars are sometimes associated with each other and they occur one after the other.
It will be the failed final flag that occurs first and then it is followed by the formation of huge trend bars.
Rather than a range of a number of candlesticks that form a trend, a failed final flag is at times comprised of a few huge trend bars.
Mainly, this happens after a very strong trend thus leading to the formation of very huge trend bars.
The Failed final flags huge trend bar candlestick trend at time may confuse the trader the trader should avoid to trade them.
Failed reverse of candlesticks
Most traders thrive on trading market reversals. Before trading a reversal, the trader will most likely
have to use indicators or do his or her own analysis.
Sometimes, everything can be pointed to a reversal and several candlesticks can even form to indicate an onset of a trend reversal,
but after some time, the trend reversal stops. This is called a failed reverse of candlesticks.
A failed reverse may lead to losses if the trader had placed trades at the beginning of the reversal anticipating a reversal.
That is why it is very advisable to give a trend reversal some time before placing a trade. This will save the trader from making losses.
Failed the wedges candlesticks
When traders say that the market prices have failed the wedge, they simply mean that the wedge was false.
If a wedge occurs, a trader is prepared for some certain things to happen to the market prices. For example,
if a rising wedge form, then the trader is almost certain that there will be a downward exit later,
a reversal will take place soon and there is a pullback occurs on the resistance. If these expectations aren’t met,
then we can say that the market prices have failed the wedge candlestick pattern.
The same would be the case if it was a falling wedge and the expectation of the wedge aren’t met.