How to Use the One-Day Pattern in Your Trading

How to Use the One-Day Pattern in Your Trading
How to Use the One-Day Pattern in Your Trading - How to Use the One-Day Pattern in Your Trading, Every trader should be aware of such day-to-day patterns because of their simplicity. Traders often forget them. By using this format, traders will have a clearer understanding of the direction the market is moving. Among the many patterns of the day, I will mention two specific patterns that are related to the gap chart that I covered in the previous post.

The most unusual of these two patterns is known as the basic daily reversal pattern. The criteria for this pattern is not as flexible as the criteria for a simple inverse date format. The difference between one and the other is small, but significant. When your candlestick hits the bottom, bottom and top, the top closes. Inverted upward unfolded, in the future if the upper upper and lower lower together with a close bottom. The candle is supposed to reverse into a downtrend.

A strong reversal indicates a significant movement of the market in the direction of resistance to the current trend. This not only indicates that the market cannot maintain new highs/lows until new highs / lows. But it also represents the development of new lows / highs in the direction of resistance.

The return date is quite normal. Simply put, when a candlestick reaches a new high and closes at a new low. On the other hand, a bottom reversal developed when a candlestick hit a new low and closed higher than the previous day. there will be a reversal

The reversal rules of the day are quite flexible, but can be very valuable. In a bull market, the close of a new low could mean that the uptrend has come to an end. and the buyer is ready to make a profit. In a bear market, the opposite is true. A new high on the close may mean that selling has come to an end and a reversal trend may occur. This movement is important. Because you don't want to get stuck on the opposite side of the trend reversal.

The Major Reverse Date or Reverse Date should not be used as the sole indicator. They should be used in conjunction with other indicators. to ensure a reversal of the market trend. If you see a pattern in a day or two, it can help you a lot in your trading. You should always look for signs of changes in market sentiment. 

And both types of back dates will help you identify those changes. when used with spaces Be it fatigue, blurry or discord. These two indicators can help you decide whether to trade market movements or not.

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