This is relatively easy to detect and the more you see the patterns; the better you will be at detecting when a stock is about to reverse.
These patterns apply to all time frames (intraday, daily, weekly, monthly, so on and so forth). I would note that the longer the time frame (daily, weekly, etc.) the more likely; there’s accuracy to the move. In other words, I am more keen to trust this pattern if I see it on a longer timeframe then any intraday time. Although, I should note that it’s reliable with intraday charts as well.
We are aware that reversals tend to happen after we see a Doji, Spinning Top or Hammer. Refer to Candlestick 101 for more information regarding these terms.
However, another way I sense that the bear raid is over and it's time to buy is:
Once I see a green candle close above the point of consolidation; it signals to me the bear raid has dried up. And I typically long above consolidaition. Using the break-out point as my level of support (stop loss range).
Look at the charts below to further reinforce these points. Paying attention to points 1, 2 and 3.
With time, reading this becomes easier. Continue studying. It becomes easier.
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