Candlestick Patterns and Trading Tactics

Expert opinion: There are many different candle configurations. They can have one, two, three, or even more candles. The more candles you need to formulate a signal, the more reliable it will probably be, but these signals are rarer.

Expert opinion: The primary purpose of turning-point candle configurations is to provide a hint for the moment to open a trade. In other words, they signal a potential turning point in the movement of the price. Needless to say, these turning points could just be short-term corrections, so for the sake of reliability you need to consider other analysis tools such as level of support and resistance as well.

Expert opinion: Any turning-point candle configuration of two or more candles can be presented in the form of a single candle. If the resulting candle resembles the Hammer configuration, this is a good signal to act.