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I wanted to share with the group the most important
pattern I look in evaluating turning signals. I would like to point out the
following:
1. The patterns I posted are not replacement of
reading the text books on Candlestick, but "AFTER" reading these books you may
be lost of what is important and what to look for and these patterns are the key
to understand reversal using candlestick analysis. I posted important top
reversal (inverted image can apply for the bottom)
2. I want to caution the beginners,candlestick are
NOT the answer for being profitable in the market, but they help in
understanding the BIG PICTURE.
3. By reading the textbooks on candlesticks your
will learn how to use these patterns in entry, stop placement ...etc(personally
I do not enter
4. It is important to consider VOLUME in relation
to these patterns.
5. When you see a potential reversal top or bottom
either major or minor, ask your self what is the candlestick pattern and where
is the entry point and stop(BEFORE YOU DECIDE WHAT PRICE YOU ENTER DETERMINE
YOUR STOP FIRST-MAKE IT A HABIT)
6. I wanted to say something about risk/reward
issue for entrance but this is a big topic (I don't want to spend my
weekend typing it)I wish another trader on this group address it and I will help
in comments.
The reason for bringing this topic(candlestick) is
point out to the beginners that there is important relation between open, high,
low and close which translate into important pattern formations.
Lastly, the document I attached is in Microsoft
word format, you can edit the document and add your personal note as you
progress.
Best wishes,
Haytham
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Attachment:
Description: "Potential Top Reversal Signals.doc"
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