Pattern break candlestick trading

Pattern break candlestick trading

Most traders use patterns in the market to trade. And contrary to the trend trading

where traders mainly trade in the direction of the trend, in pattern trading, traders prefer pattern break candlestick trading.

A pattern break occurs when the market price movements goes contrary to the previous market

price movement pattern. For Example, the market prices movements may be forming

a symmetrical triangle pattern and all of a sudden, a candlestick moves

down past the lower line of the previously formed symmetrical triangle leading to a

‘break down’ on the symmetrical triangle pattern.

The trader should always wait for the completion of the formation of at least two candlesticks

after a pattern break occurs so that the trader can place an order in the market.

This will reduce the risk of placing a trade and then a pattern break reversal from happens.

Pattern break reversal candlestick trading