Candle Patterns Most Common Candle Pattern Traps
Market makers often create fake patterns to trap retail traders.
1. Fake breakouts with long wicks
2. False engulfings inside noisy ranges
3. Pin bars created by stop-loss hunting
4. Inside bars before false breakout
Avoid trading patterns formed:
At random zones
Without volume
Against trend
Candlesticktrader
Candle Patterns How to Use Candle Patterns in Trading
Candlestick patterns alone are not enough. Combine them with:
Support & Resistance
Volume Profile
Market Structure
Trendline & Channels
Moving Averages
RSI / MACD
A candle pattern at a strong support zone is more reliable than a pattern in the middle of nowhere.
Candle Pattern Formation In BHEL , Possible Reversal !The daily candy chart of BHEL shows a Bullish Harami candle formation near a support / demand zone . The yellow highlighted box has three candles , the small green candle or the child candle after the first red candle is the bullish harami candle. There has to be a continuous downtrend in the stock and then a small green candle within the previous red candle, makes the sellers nervous and then we may see a reversal and up move after the bullish harami candle. The buyers come back into action once they see a bullish harami post a downtrend. The bullish haram in BHEL has formed near a crucial support or demand zone , this gives a double confirmation of a possible up move and we see on today's daily chart that price has moved up confirming the reversal !


