A technical reversal is just a reversal that shows on the chart but has no underlying reason or basis in fundamentals, such as the value of a share of the company, nor in news such as bank interest rate etc. So price reversed because market constituents decided it had gone down far enough to attract enough other buyers to make price go up again so they bought it again.
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So you entered on the open of the 1st bull candle after the 3 bear candles?
Part of my strategy includes trading the same kind of paterns. This is how I see it:
To me this pattern would indicate a possible long position after the close of the same candle you used. To determine the validity of the signal, the following would be taken into consideration.
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Body size of the bullish candle. I would prefer it to be a larger size than the one in this example but not huge
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Size of the shadow of that same bullish candle and also, shadow size in relation to the body. The smaller the ratio the better.
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Whats the time frame?
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Significance of the s/r level and the swing low. Is it a major level? Is the swing low the most recent swing low?
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distance between entry and s/l
The size of the bullish candle used would be a cause of concern, but besides that, if the s/r and swing low levels are major levels and if this is a 4hr chart or higher, I would go long
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After the bullish candle closes, I would use an entry order at either the open of the bullish candle or at the second lowest low, (the bearish candle 2 places to the left of the bullish candle)
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s/l would be a few pips below the swing low.
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It looks like the first bearish candle after the bull candle used would have triggered an entry assuming my entry order was placed at the open of the bull candle. (The low of the 1st bear candle after the bull candle violated the open of the bull candle)
Thats my take on the chart in question.
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Hi Campione, You can google Candlesticks by Nial Fuller and anooher website by Steve Nison. They are excellent articles. Basically a Fakey happens when all traders get sucked into a break and then the market reverses in the other direction. Then you have a situation where all the trapped traders MUST cut their positions and then the market flies! Also after a consolidation phase the market will break in one direction,for a few pips, and then reverse in the opposite direction. If you can spot only those trades you will be massively successful. But combine all candle trading with an indicator for easier identifying. Have fun! Cheers.
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That’s a very interesting comment, haha
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This is my own opinion… For me all chart patterns is just for reference… Don’t follow blindly… Don’t b surprise if it suddenly goes either which way which u unexpected if there a sudden news release or anything suddenly happen… N stop u out… Every candle have it own price action. Current live price action is the best, backtest is always perfect… Nv backtest, nv rely on chart patterns
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Hello Campoine! I understand your emotions! Please, if you face this problem in your live account consistently than go for demo once again! Don’t waste your money in your live trading! You have to improve more on trendy status of market! May I know, how do you identify market trend?
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(All figures are 5min here)
Hiya,
Its 5min time-frame. EUR/USD. You can see the date and time of position in charts.
Entry sell price: 1.11434 > TP: 1.11390 (but price go to 1.11918)
“What led you to enter your trade at this price level?” I see three fast bear candles and I believed that is going down, also I look at some indicators and the overall my strategy looks 60% is OK to place a sell position.But now do you see what happened to me. I feel deadly headache after this few thousand pound loss! 
I don’t know how to draw my headache and pain by these…
Anyone can help me figure out what exactly is the issue? If you need any specific charts to answer me correctly, please ask me to send them?
Thnx
xoxo
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Hiya,
Maybe I don’t know how to identify trend, may please you tell me how to identify it correctly?
Thnx
(I will answer all comments and like your answers guys. Please be patient as I have limited time to write everyday. Thnx 
)
Look, Campione.
I’ve seen a blatant pattern in all of your questions, and no disrespect intended. You’re clearly keen and eager to learn, which can only be a great attribute to have.
However, no matter what people tell you, and no matter what answers you are looking for, they will not help you. The kind of questions you are asking come down to personal experience & knowledge. Not one single person here, or on any other forum can tell you with absolute correctness why a certain trend reverses - regardless of the time frame being studied.
There is a reason why it’s known that when you give a fixed trading system to two different people you will always get different results. Even though the rules seem to be non-negotiable. We are all different, and the trading style that fits you will not fit other people. On the opposite side of the same coin this also applies on your own interpretation of technical analysis (why did price reverse at a given level).
I think it would benefit you to take a step back and learn the basics. You’re asking questions that are a step ahead of what I think you really know. So, the answers will be counter productive - not an approach I assume anyone would want to take?
Use those books, study them and combine them with real chart time experience. I promise this will enlighten you more than you might be currently considering? Give it a go.
@campione, thanks for providing these additional details.
How did you arrive at this percentage calculation? While we can see the bearish candles you mentioned, we can also see you placed a sell order towards the bottom of a larger downward trending channel. It would have been possible for the price to rise to the top of the channel and for the bearish trend to still be intact.
Your strong response to this loss seems to suggest you may have been risking too much of your money on this trade. Even if you had a 60% chance of making money, that still leaves a 40% chance of losing. Were you risking more than 2% of your account on this trade? If not, you will find your mindset about losses will change dramatically, if you risk only 2% of your account per trade.
You mentioned you lost a few thousand pounds. To risk 4000 pounds on a trade and have it be only 2% of your equity, you would need 200,000 pounds in your account.
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Well, you need to use horizontal & trend line tools for identifying market in the level of support & resistant! There have so many threads in this forum on support/resistant, please try to read all of them! Use Search button of this forum. Best of luck!
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A bullish candle with long tale after a bearish trend is a bullish signal most of the times in such a short-term timeframe.
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Can you add more pictures about this setup? Please try to add a full picture of D1! I’ll try to help on reversal pattern of market! Thank you!
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Solid answer, exactly what i was thinking too.
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By the way the answer you are looking for I doubt anyone of these members would really help you, the same reason why everyone’s charging a fee for mentoring… I know a lot of members see why it reversed on you but they’re playing the idk game… good luck.
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Hiya,
let me give you my insight into what a saw happen with that position based on the system I set up for my own trading. ( I also trade intra-day)
- the daily trend (based on 20 sma) was bullish ( though momentum was bearish based on daily stochastic)
- the 4hrs trend (based on 20 sma) was being tested ( though momentum was bearish based on 4hrs stochastic)
- the major factor i saw was that daily momentum based on stochastic was turning upward at the point when the 4hrs trend was being tested.
I hope this is of any help to you
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Hiya,
Thnx. This is the full pics of D1 in 4 zoom level. Position is in the red circle. I placed the position before the candle shape up exactly.
Thnx
I don’t know much about what you’re trading or the details. In terms of candlestick patterns, you seem to have an inverted hanging man candle, followed by a bullish engulfing pattern. Most traders trade with trend such that if they are trading short, they trade on corrections and they enter closer to the average price. After a big move has occurred, and you a experienced trader, you tend to think that the farther you get away from average price, the more likely that things are going to correct. You’re trading after a pretty big move, so many traders might think of this as chasing price. In other words, when price moves big, a lot of traders are always trying to jump in. They are usually the ones caught in the trap at the end of moves. Someone is trying to get out of their profitable trades who got into this move much earlier, and now those trying to jump in after the move are providing the other side of their trade.
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