Identifying Candlestick Patterns: Bullish Crown (and Why it can be Tricky)
Candlestick Patterns are clear signals in a trader’s charts that profits are available in a currency pair. These classic patterns yield repeatable wins because they occur again and again. So they’re worth learning.
But putting them to use can sometimes present challenges. Chris Pulver, Senior Currency Strategist at Market Traders Institute, says he looks for confirmation to develop when he seeks to trade a bullish crown, for instance.
“You would hopefully see a nice little lineup with our red sentiment strength line,” Pulver said. “… If we see a few red sequences to the downside, and then we see one green, that’s enough for me to hopefully see. Buy trade, stop area below, that’s the right tip of the crown forming, and I want to see that push to the upside.”
Setting chart alarms for a low can help identify structure, said Pulver, demonstrating action in a recent currency pair that had him waiting for confirmation.
“We’ve seen some crowns be a little tricky,” he said. “… I would like to see it come back and find equal lows.”
So, some amount of attention is needed to ensure candlestick patterns can be a quick signal to a smart trading opportunity.
A mentor or educator can help spot patterns for you while you learn. Also, an automated indicator or smart tool can also identify time-tested candlestick patterns.
For more about Chris Pulver and how he has honed his trading approach, check out his bio at MarketTraders.com. This is just one example of the level of detail available in his classrooms and others at MTI every day. And watch for Chris to appear in an industry podcast coming up soon!