The most accurate top reversal candlesticks based on historical price action and trader reliability:
Top reversal candlestick patterns signal potential trend reversals from an uptrend to a downtrend. Here are the most accurate top reversal candlesticks based on historical price action and trader reliability:
1. Bearish Engulfing
- Structure:A large red candle completely engulfs the previous green candle.
- Accuracy: High when appearing after a strong uptrend.
- Confirmation:Next candle should close lower for confirmation.
2. Shooting Star
- Structure:Small body at the bottom with a long upper wick (at least 2x the body).
- Accuracy: High when it forms near resistance levels.
- Confirmation: A red candle closing below the shooting star.
3. Evening Star
- Structure:Three candles – a large green candle, a small-bodied candle (indecision), and a large red candle closing below the first.
- Accuracy:Very high, especially on higher timeframes.
- Confirmation:The red candle should close well below the midpoint of the first green candle.
4. Dark Cloud Cover
- Structure: A red candle opens above the previous green candle but closes below its midpoint.
- Accuracy: High, especially with high volume.
- Confirmation:The next candle should continue downward.
5. Hanging Man
Structure:Small body at the top with a long lower wick.
Accuracy:Moderate to high, depending on volume and confirmation.
- Confirmation: A strong red candle closing below the hanging man.
6. Gravestone Doji
Structure:Open, low, and close are nearly the same, with a long upper wick.
- Accuracy:High when it appears at key resistance levels.
- Confirmation:A red candle closing lower.
Best Practices for High Accuracy:
- Use higher timeframes (4H, Daily, Weekly) for better signals.
Below Images will give you clear Incite
- Look for volume confirmation
(higher volume increases reliability).
- Combine with support/resistance levels or other technical indicators (RSI, MACD).
Hope you get clear Ideas on trading with candles
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