· A top reversal is only possible AFTER an uptrend.
· Most patterns need a confirmation.
· A confirmation must appear one up to three candlesafter the pattern.
· This confirmation is a big black candle, high volume with the new down move, a falling window, or breaking support.
· For best results, you must combine candlestick patterns with Western technical analysis.
· An unconfirmed pattern has no further meaning.
CANDLESTICK’S CONTINUATION PATTERNS
Bullish Three-line Strike (бичачі три лінії атаки)
In an uptrend, there are three or more days of higher prices, followed by a big black candle covering most of the previous bars’ up-move.
Wait for a confirmation.
Rising Three (метод трьох висхідних)
In an uptrend, a big white candle is followed by a number of small, mostly black bodies. The pattern ends with a big white candle with a new high price.
Mat Hold (утримування на татамі)
This is a variation of the rising three. In an uptrend, a big white candle is followed by a small candle with a rising window and a lower closing price, forming an evening star pattern.
Next, there are a number of small, mostly black candles. The pattern ends with a big white candle with a new high price.
Separating Lines (роздільні лінії)
In an uptrend, a black body is followed by a white body with the same opening price.