When it comes to patterns, make sure to emphasize them!
Let's look at examples and compare a couple of patterns.
1) In the upper left picture, we see three confirmations of the “buy” sign: the price completed the corrective movement; a higher minimum was formed; the direction of the sign coincides with the direction of the general trend. Then the price continued the upward trend.
In the top right image, the pattern is wrong for two reasons: first, it was against the general trend, but before entering the reversal settings, waiting for a new test is crucial! And the second lower maximum and lower minimum were formed.
2) At the bottom left, the "FOR SALE" sign is confirmed by four things: the general guitarist trend; the correction phase is complete; an important level of resistance; and a lower high. Then the price continued its downward trend.
However, at the bottom right, the pattern is wrong. The signal is against the general trend, a higher maximum is formed and the resistance area is broken.
Don't underestimate these important affirmations when working with trends:
- Consistency with the general trend.
-High/Low Low/Highest.
- Presence of support/resistance areas.
- Fibonacci levels.
-Trend lines.
Always confirm the double direction and do not rush it!
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