Failed signal entry bars candlesticks
Failed signal entry bars are also referred to as “false signal bars”.
A trader should be very careful to avoid entering signals on the basis of failed signal bars.
A failed signal bar occurs when a trader anticipates a signal to mature for him or her to place an order
and then the signal fails to get completed. On such cases, the trader may get tempted to place an order
thinking that the signal will still occur since it tried occurring. But on the contrary,
the trader should avoid placing any order if a failed signal occurs.
When a failed signal entry bar occurs the trader should be patient enough to wait for the actual signal
to completely form.
Failed the breakout candlesticks
When a trader says that the market prices have failed the breakout, what he or she simply means is
that there was a false breakout. The breakout looked like it would occur, but failed to occur
(the breakout did not actually take place). There are no definite indication that a breakout
will fail in advance and the trader can only notice the failed breakout once it occurs.
But a trader can avoid being caught off guard by a failed breakout by giving the breakout enough
time to complete taking place. A trader should never trade by anticipating a breakout; you should
only trade when the actual breakout takes place and the candlestick that broke out closes above
the Brocken market price level.
Overshoot and reversals candlesticks
An overshoot is an occurrence where the market prices abruptly go past a previous set high or low price levels.
In most cases, an overshoot will definitely signal a near future reversal and the trader should brace him or
herself for trading reversal when an overshoot occurs.
It is very easy to detect an overshoot since it will also catch the trader off guard and in most cases to
an extent of panicking.
After an overshoot occurs, you should look for signs of a reversal and if any is detected and confirmed.
In most cases, a reversal that occurs after an overshoot is almost a sure trend reversal.
Failed high low candlesticks
A failed high low candlestick pattern is a pattern that fails to get to the anticipated highest and lowest market prices.
In most cases, the trader will use the previously formed candlesticks to determine the high and low market price levels.
For example, a trader can identify a mother bar and use it to determine the high and low levels using the highest market
price it has reached and the lowest market price reached respectively. But the other candlesticks that are formed in the
low and high range that is identified using the mother candlestick may not actually reach the high and lows that were
identified.
Three pushes and wedges candlesticks
A trader can improve his or her three pushes pullback trading strategy by incorporating wedges.
A wedge in forex is similar to a triangle in shape (the candlesticks form a triangular or wedge shape).
The wedge shape is formed by two trend lines that slant towards each other and touch at some point an
a support or resistance level. The wedge can either be a falling wedge or a rising wedge.
A falling wedge slant up while a rising wedge slants down.
When a bullish three pushes candlestick pattern is followed by the formation of a rising wedge,
then the trader should be confident to place a buy. On the other hand, if a bearish three pushes
candlestick pattern is followed by a falling wedge, then the trader should be confident to place a sell.