Hook Candlestick Reversal Pattern

Hook Candlestick Reversal Pattern

Hook reversals are short-term- to medium-term reversal patterns. They're recognized by a loftier low and a shorter high compared to the prior twenty-four hours.

In that respect a few crucial matters to think of while employing this approach pattern:

    * Entry: verifying the reversal pattern - whenever the pattern happens after an uptrend, then the open needs to be nearby the previous high, and the low needs to be nearby the previous low. Whenever the pattern happens after a downtrend, then the reverse is true. Like with the island reversal pattern, we're as well seeking high volume on this 2nd candle. In conclusion, the firmer the previous trend, the more dependable the reversal pattern.
    * Exit: determining the target and stop - In just about all instances, you'll encounter a abrupt reversal while employing this model. Whenever the next candle demonstrates a strong continuance of the previous trend, then the reversal pattern is invalid, and you ought to get out rapidly, but prudently.