Role of Elongated Candles in Predicting the overall Picture
I got numerous of charts and request regarding How strong candles can works as strong reversals when we try predict it as a part of Reversal.
I will clear it in few examples that how we can see mature trend followed by bounce of the inner space of that elongated candles and then we see Price test the high after find the low of correctional bottom
Most of time In Currencies case, Price do tend to behave and take much more time in reversing rather in cases of stocks and commodities, When price does tend good time at the top then we always realize that It is holding high prices and will offer a pullback but it never come specially when first attempt to reverse it too strong as in this case
That attempt was so strong that it did not offer and candlestick pattern to offer pullback but if You watch the next attempt to revise from the Inside of elongated candle it does offer couple patterns which fails and price finally rise when it test that candle.
As I always suggest that never sell at the downside breakout or never buy at the upside breakout but try to built such trading strategies or breakout systems that offer lot of logic, As in this case. It's not easy to built a reliable systems but still for trading something has to have enough potential to compete with the best in the industry.
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