How to Confirm a relatively strong reversal/ rejection of a short-term trend using candlestick patterns?
What are the important factors to confirm the reliability of the candlestick chart patterns?
I have my way of looking at the candlesticks and analyzing their characteristics, like who dominated (buyers/seller), What is the size of the candle as compared to previous candles, Where the body is placed (upper part or lower part of the trading range), comparing preceding candles with the current candle’s range and the volume during the whole period.
Most Importantly I analyze the subsequent – follow-up candle formed after the candlestick pattern to enter the trade.
The closings are always important in the technical analysis prospect.
The higher VOLUME during the pattern formation, the more reliable the patterns tend to blow off, as there is an increase in the participants.