AntaresScorpius
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On the 3-hour chart, we can see two candles with identical closes: one green and one red. The pattern is a Matching High (in an uptrend).
• It occurs when two consecutive candles close at the same level, with the first green (bullish) and the second red (bearish).
• It may indicate resistance: buyers pushed the price higher, but sellers rejected the move, closing at the same level.
• Potential signal of reversal or indecision.
Signal of indecision.
If the pattern appears after a strong move (as in our case after a breakout), it could represent a technical pause, or a moment of equilibrium between buyers and sellers.
What to watch next?
• Has volume increased or decreased?
• RSI or MACD indicators: Do they confirm a possible slowdown?
• The next candle: Does it break the closing level or stay within it?
On the 2-hour chart, however, we can see a nice shooting star, as it has a small red body near the high, and with a long upper shadow—this is truly a shooting star.
It shows a potential signal of the exhaustion of bullish momentum.
On D1, however, the breakout of the symmetrical triangle is clearly visible, with a nice bullish engulfing. This shows that the day's rally must continue.
What does this pattern indicate?
Bullish Engulfing
• It is a bullish reversal pattern.
• It occurs when a green (bullish) candle completely engulfs the previous red (bearish) candle.
• It indicates that buyers have forcefully taken control.
Symmetrical Triangle
• It is a continuation or indecision pattern.
• An upside breakout suggests that the market has chosen its direction: upward.
• It often heralds an impulsive move after a compression phase.
Interpreting the Context
• The fact that the breakout is accompanied by a bullish engulfing trend reinforces the validity of the breakout.
• If supported by increasing volume, it is even more reliable.
• The indicators (positive MACD, Stoch RSI in the overbought zone) confirm bullish momentum.
Possible Scenarios
STRATEGY CONFIRMATION SCENARIO
Bullish Continuation Close above the triangle's resistance Long entry with a stop below the breakout
Technical Pullback Return to the triangle's line Entry on a retracement with a confirmed green candlestick
False Breakout Subsequent bearish candlestick with low volume Wait for confirmation before entering
What does FALSE BREAKOUT mean?
1. The breakout candlestick is misleading.
• The bullish engulfing trend breaks the triangle, but does so on low volume, or in a context of negative divergence (e.g., MACD or RSI do not confirm).
• The price closes above the resistance, but there is no follow through: subsequent candles do not confirm the strength.
2. The next candle contradicts the breakout.
• After the bullish engulfing, the next candle opens in a gap down or shows strong bearish pressure.
• This may indicate that the breakout was merely a bull trap.
• If the price re-enters the triangle, the breakout is considered a failure.
How to recognize it?
Increasing volume
confirms 1-2 subsequent green candles
MACD, RSI, and Stochastic indicators must support the movement
If you go long on the breakout, set a stop loss just below the triangle line. If the price re-enters: exit the trade; a small loss is better than being trapped.
• It occurs when two consecutive candles close at the same level, with the first green (bullish) and the second red (bearish).
• It may indicate resistance: buyers pushed the price higher, but sellers rejected the move, closing at the same level.
• Potential signal of reversal or indecision.
Signal of indecision.
If the pattern appears after a strong move (as in our case after a breakout), it could represent a technical pause, or a moment of equilibrium between buyers and sellers.
What to watch next?
• Has volume increased or decreased?
• RSI or MACD indicators: Do they confirm a possible slowdown?
• The next candle: Does it break the closing level or stay within it?
On the 2-hour chart, however, we can see a nice shooting star, as it has a small red body near the high, and with a long upper shadow—this is truly a shooting star.
It shows a potential signal of the exhaustion of bullish momentum.
On D1, however, the breakout of the symmetrical triangle is clearly visible, with a nice bullish engulfing. This shows that the day's rally must continue.
What does this pattern indicate?
Bullish Engulfing
• It is a bullish reversal pattern.
• It occurs when a green (bullish) candle completely engulfs the previous red (bearish) candle.
• It indicates that buyers have forcefully taken control.
Symmetrical Triangle
• It is a continuation or indecision pattern.
• An upside breakout suggests that the market has chosen its direction: upward.
• It often heralds an impulsive move after a compression phase.
Interpreting the Context
• The fact that the breakout is accompanied by a bullish engulfing trend reinforces the validity of the breakout.
• If supported by increasing volume, it is even more reliable.
• The indicators (positive MACD, Stoch RSI in the overbought zone) confirm bullish momentum.
Possible Scenarios
STRATEGY CONFIRMATION SCENARIO
Bullish Continuation Close above the triangle's resistance Long entry with a stop below the breakout
Technical Pullback Return to the triangle's line Entry on a retracement with a confirmed green candlestick
False Breakout Subsequent bearish candlestick with low volume Wait for confirmation before entering
What does FALSE BREAKOUT mean?
1. The breakout candlestick is misleading.
• The bullish engulfing trend breaks the triangle, but does so on low volume, or in a context of negative divergence (e.g., MACD or RSI do not confirm).
• The price closes above the resistance, but there is no follow through: subsequent candles do not confirm the strength.
2. The next candle contradicts the breakout.
• After the bullish engulfing, the next candle opens in a gap down or shows strong bearish pressure.
• This may indicate that the breakout was merely a bull trap.
• If the price re-enters the triangle, the breakout is considered a failure.
How to recognize it?
Increasing volume
confirms 1-2 subsequent green candles
MACD, RSI, and Stochastic indicators must support the movement
If you go long on the breakout, set a stop loss just below the triangle line. If the price re-enters: exit the trade; a small loss is better than being trapped.
