does candlesticks pattern is the only way to locate trades

Here, I would really feel sorry for those who look to relying on base candlesticks patterns to find trade location (even though they have importance but overall context is necessary).

Sometime we try trading those patterns with small stops in rangebound or trending markets but they have least importance while price is ranges.

There are two type of basic rules in trading when you trade and one of them is breakout and other one is fading the breakout and candlesticks patterns plays an important role which breakouts are there to trade and which one are to fade out.

Candlesticks charts are least important pattern in trend recognition

I have post a chart of pound where I have discussed all the important factor to how to trade a reversal . There are few points I have clear that even though prior accumulation and strength of trend was immense but it takes a day to reversal to happen and that is what we all needed to look out for such patterns for an Intraday trade.

We have few basic bullish engulfing patterns, one at the top of the chart and other one happened just today followed by strong selling.

Just take a look at the chart below !