Bullish Confirmations in Candlesticks reversal patterns

[babymush]

Hi

I always read that we need Bullish Confirmation before trading or acting on Candlesticks reversal patterns.


What does it mean by bullish confirmation?

Does it mean a big advance up? IN this case, after the confimation, do we Buy at the high of the Big Advance up bar?

 

[barjon]

babymush

Depends on the pattern and timescale. For example, if you're looking at a shooting star and thinking very short term you'd want confirmation by an opening below the shooting star's low (when you might sell immediately if the price moved down from that lower opening) or an opening at the close or within the shooting star's body which immediately moved down (when you might sell when it moved below the shooting star's low).

For other timescales you'd want to see the price break through s/r levels and sell/buy on the break.

In candlestick terms, "reversal" just means change. Thus, up trend to flat is just as likely (maybe more so)as up to down.

good trading

jon

 

[sulong]

Hi

I always read that we need Bullish Confirmation before trading or acting on Candlesticks reversal patterns.

What does it mean by bullish confirmation?

It seems like each trader means something different when referring to "Confirmation"

Some mean another price bar, some say volume, and still others say some kind of indicator action.

For me, an out of whack volume bar is confirmation. What this means is a V bar that is ether very long, or very short, compared to the preceding V bars, and /or the V at the preceding price area that is being tested. (S/R)

 

[babymush]

Hi Sulong,

Won't Out of Whack volume = climatic volume which MAY cause the stock to move sideways for the following 3-4 periods?

 

[sulong]

Hi Sulong,

Won't Out of Whack volume = climatic volume which MAY cause the stock to move sideways for the following 3-4 periods?

I'm not sure exactly what you'er asking...
But, volume will not "cause " price to do anything.
As far as confirmation gos,
First you have a "potential" reversal,if you enter at this potential, then you need to have more "confirmation" as price bars print to know if you ought to stay in the trade, and so on.
The point is, you need to "continually confirm" that the reason for your entry still exist.

 

[des44]

BM,
Look for swing-highs and swing-lows (usually after a solid three to four day run). In the example of a swing-low, a reversal candle is signified by receiving a candle stick that makes a higher high and a higher low--breaking the pattern of the lower highs and lower lows. Clear as mud?

d-