What would you call this candle pattern? | Forex Factory

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What would you call this candle pattern?

  • #1
  • First Post: Sep 30, 2015 10:45pm Sep 30, 2015 10:45pm
Most candle patterns place emphasis on the first bar eg. engulfing bar or strong candle following a doji, for when price action is reversing or resuming original direction after a retracement.

So what would the candle pattern in the pic be called? This is pretty common and doesn't seem to be given a name. I am stating that it is a significant reversal pattern since the first green candle is hardly different from a doji and it is a strong bullish candle anyway. It does occur at previous resistance - H4 on the GBPSGD as of 01/10/2015
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  • #2
  • Sep 30, 2015 10:53pm Sep 30, 2015 10:53pm
Quoting richhand
Most candle patterns place emphasis on the first bar eg. engulfing bar or strong candle following a doji, for when price action is reversing or resuming original direction after a retracement. So what would the candle pattern in the pic be called? This is pretty common and doesn't seem to be given a name. I am stating that it is a significant reversal pattern since the first green candle is hardly different from a doji and it is a strong bullish candle anyway. It does occur at previous resistance - H4 on the GBPSGD as of 01/10/2015 {image}
It doesn't Matter what is called, Price won't do anything as a result of it. It however is a great indicator of what price did, look at the price where it stopped falling... all it means is that selling pressure stopped at that price at that particular point in time.
AVT INVENIAM VIAM AVT FACIAM
  • #3
  • Sep 30, 2015 11:35pm Sep 30, 2015 11:35pm
Quoting richhand
Most candle patterns place emphasis on the first bar eg. engulfing bar or strong candle following a doji, for when price action is reversing or resuming original direction after a retracement. So what would the candle pattern in the pic be called? This is pretty common and doesn't seem to be given a name. I am stating that it is a significant reversal pattern since the first green candle is hardly different from a doji and it is a strong bullish candle anyway. It does occur at previous resistance - H4 on the GBPSGD as of 01/10/2015 {image}
A great example showing that candle patterns are meaningless.

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I have highlighted (yellow arrow) a hammer reversal. When it happened it was a "valid" signal; however the one that is chosen for "analysis" is some pattern that seems to have worked out..

Another great example of pareidolia: a basic human instinct to see patterns where none exist.
  • #4
  • Sep 30, 2015 11:40pm Sep 30, 2015 11:40pm
Quoting the redlion
{quote} It doesn't Matter what is called, Price won't do anything as a result of it. It however is a great indicator of what price did, look at the price where it stopped falling... all it means is that selling pressure stopped at that price at that particular point in time.
You could say that about any candle were the sellers have been over powered and vice versa. Does this mean englfing bars are meaningless too?
  • #5
  • Sep 30, 2015 11:43pm Sep 30, 2015 11:43pm
Quoting Mingary
{quote} A great example showing that candle patterns are meaningless. {image} I have highlighted (yellow arrow) a hammer reversal. When it happened it was a "valid" signal; however the one that is chosen for "analysis" is some pattern that seems to have worked out.. Another great example of pareidolia: a basic human instinct to see patterns where none exist.
At a previous level of support/resistance would you not say an engulfing bar or pin bar enhances the chances of reversal when compared to any olther bar?
  • #6
  • Sep 30, 2015 11:45pm Sep 30, 2015 11:45pm
Quoting richhand
{quote} You could say that about any candle were the sellers have been over powered and vice versa. Does this mean englfing bars are meaningless too?
There are "engulfing patterns" everywhere on a price chart ... only the ones that have worked on hindsight are used as a proof that the pattern works...
Obviously, there is something very wrong with that ...
  • #7
  • Sep 30, 2015 11:47pm Sep 30, 2015 11:47pm
Quoting richhand
{quote} At a previous level of support/resistance would you not say an engulfing bar or pin bar enhances the chances of reversal when compared to any olther bar?
Nope. Because they can appear anywhere, only hindsight will reveal if the pattern was valid...
  • #8
  • Sep 30, 2015 11:52pm Sep 30, 2015 11:52pm
thats '"we dont know what the fucks going on" pattern. we can call all of the patterns the same way. market driving forces dont give a damn about the pattern.
  • #9
  • Oct 1, 2015 12:08am Oct 1, 2015 12:08am
We see this pattern all over the charts too. The candle on the right has a greater chance of continuing the bearish signal without being stopped out first.
Attached Image
  • #10
  • Oct 1, 2015 12:20am Oct 1, 2015 12:20am
Quoting richhand
We see this pattern all over the charts too. The candle on the right has a greater chance of continuing the bearish signal without being stopped out first. {image}
The pattern is irrelevant (they are all unreliable), it's one's reaction to it that matters.
  • #11
  • Last Post: Oct 1, 2015 8:18am Oct 1, 2015 8:18am
Quoting Mingary
{quote} The pattern is irrelevant (they are all unreliable), it's one's reaction to it that matters.
Hi Mingary,

Agree that one's reaction is the most important.

However, "patterns" may provide the "clues" to influencing trading decisions so one may act when it happens (before it looks fully developed on hindsight).
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