As it is cleared from the title, I am hereby want to clear few points and question of concern which I earlier answer in mails but it is not possible to reply all of them and pinpoint every topic of candlestick patterns and their real connection with price action.
As we always hear from experience traders that Price Action is the best technique we use in strong trends and just about reaction to EMA,Support or resistance or even other indicators reacting at such levels. Does these type of patterns really going to make you some money in the long term even If you spend years to understand and practice it, but then what about the risk because no matter how your practice how you achieve success on virtual deposits.
Things does never go as we first anticipate or progress as expected because we fall in self-destructive preposition and keep working on something which are always respected to react the same as it does earlier.
*** Trading Price Action With Support and Resistance
Is not that sounds crazy that You trade Price Action and trade historical levels and expected candles to react at support or resistance the same way as it has done in the past or doing since past few decades. This is in itself asking too many questions for yourself.
***Why Price Action trading with historical levels
All the answers will be responded one by one with time as Trading blind setups of price action where chance of failures are more than the chance of winning became our habit and premium tool to predict the future price of assets,which looks quite impossible.
*** Trendline Role In Predicting Future Price of any asset
Chart above shows the only role of Trendline is to gather enough order with every test and small rallies after test is the process of ongoing bulk orders against the recent spike and getting best and real value of the price when asset was bought at the first test of Trendline.
Benefit of building Portfolio of every Trading Strategy
Some traders keep doing and showing same reaction with time and look to adapt to the situation and for some instance they succeed sometimes and manage to catch few moves but You need to Proper portfolio on what type of trades you took and what is the average profit of such system with stop and target as that always help you look for potential reward when such mechanical system is the primary tool for predicting price action
Bottom line is without understanding the complete picture and context, You must have few other powerful tools like potential risk reward and money management helps you with using mechanical system but It need complete and years of practice to perfect .It always has been a professional approach towards your trading and lining particular pairs only that You think can offer any pullbacks but you should not wait untill it completely reverse and you left with nothing but a huge loss because of momentum carrying and sentiment changes.
Role of Crucial Support and resistance when Price Visit them againI am not denying the fact that every support or resistance fails, but how many of them would hold nobody know but when and why the should hold is a question of complete attention and knowledge needed to read those moves. Everything should be in-line and crystal clear and should be known in advance and then only you can lower the risk and earn maximum profit potential when You look for resistance or supply is far enough to offer some 3x or even 5x reward on particular trade, where a whole candle can be an earlier attempt to look for strong move in the opposite direction before continuing or resuming the earlier attempt.
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