Hello traders,
Do you disregard reversal Japanese candlestick patterns that go in the opposite direction of the trend? For example there is a bull trend and you get a shooting star or an evening star. Whereas a hammer or a morning star are stronger signals if they go with the bull trend?
A reversal signal is only a reversal signal if it suggests price direction will reverse. So a shooting star is only a shooting star if it prints in an uptrend: the “shooting star” candlestick printing in a downtrend is not a shooting star.
I wouldn’t say that a shooting star (in an uptrend) is a fantastic continuation signal if price fails to fall or if it rises above its high, its just another candlestick in the trend - its not better than any other candlestick form.
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Hi, candlestick patterns will be different to work on different time frames and instruments, there is no 100% answer, you have to test it.
the strongest reversal signals that I personally count on a lot, are double and triple tops and bottoms, just remember that, there should be a clear trend and these should happen at the end of the trend.