Its been a while since my last post. In this post I have represented selective reversal patterns.
In a , "body" represents the distance between candle OPEN and CLOSING price. Whereas "wicks" represent the entire range of the candle from TOP to the BOTTOM.
In most of these patterns only bodies are important. There are no conditions for wicks unless specifically mentioned like in abandoned baby star and (first two candles of) pattern. In an abandoned baby star pattern the wicks of the second day should not overlap with the wicks of first and third day. But there can be wick overlapping in morning and evening stars where the condition is for bodies only.
Similarly in , the second day should not overlap with the first day (not even wicks) whereas the third day may have some overlapping.
One should always try these patterns with some sort of confirmation in the form of or overbought/oversold scenarios etc. While taking a trade based on these patterns one should follow money management and trade management principles.
I hope this post will update your knowledge in one way or the other.
Do not forget to like and comment (for any doubts) to encourage writing on trading view.
Best places to look for these patterns are:
Support and resistance;
Trending moving averages
Can you add a few more places where they gain significance?
Thanks for your support to the post. I will try to post some more useful stuff in the coming days.
But if range is narrow, it may look like a spinning top which has different interpretations under different scenarios.
All candlestick patterns gain significance from the market structure in which they operate. So they should not be seen in isolation.