We took this trade based on the shooting star followed by a strong engulfing candle reversal pattern. Volume was strong as well as momentum. We have had the best results with this pattern if it "immediately" follows a strong impulsive move. Price action was moving down nicely then boom, against it. We use a R/R of 2:1 on all of our trades. As swing traders some of our trades will take a week to play out others less than 24 hours. Do any of you trade reversals? What is your favorite reversal pattern?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.