Trend line channel failed breakouts candlesticks 

Trend line channel failed breakouts candlesticks

There are a number of times that a trader will find himself or herself closing his orders
with a negative due to a reverse of an anticipated breakout.
The breakout occurs prompting the trader to place an order, but after the breakout candlestick closes,
the next candlestick to form moves in the opposite direction and the trend continues.

If the failed breakout was based on a trend line channel,
then the candlesticks that form are referred to as a trend line channel failed breakouts candlesticks.

Failed breakouts are the reason as to why the trader should always give the breakout some time;
approximately a period enough for two candlesticks to completely form.

https://youtu.be/I1nmx0jWsLs

 

Trends reverse with a test candlesticks

In most cases, a trend reversal will not just begin and continue without hitches.
Many are the times that a trend reversal will have test candlesticks. The test candlesticks are candlesticks that form when a trend reversal starts.
The test candlesticks tend to form a pattern as though to start whether the reversal is strong enough to continue.

Sometimes the test candlesticks may create panic among many traders since they tend to think that the trend reversal was not genuine to begin with.
But in most cases the test candlesticks will be smaller in length and in most cases will not go past the start of the reversal pattern.

https://youtu.be/XUmtfRNxghM

 

Signs all strength in the first leg of a reversal candlesticks

It is very hard for a trader to tell the strength of any reversal pattern especially at the onset of the first leg of the reversal candlesticks.
In actual fact it will take some bit of caution and analysis of the previously formed candlesticks so as to tell how strong a reversal is.

There are different types of candlesticks which can clearly tell the trader if the reversal trend is strong.
The most effective signs all strength in the first leg of a reversal candlesticks are: formation of a doji,
formation of either a Hammer or a Hanging Men, formation of a morning Star or an evening Star or even the formation of a shooting Star.

https://youtu.be/7faECkdV4nM

Trend reversal candlesticks