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How to find high probability bullish reversal setups

 Great!

 You’ve learned the different bullish reversal candlestick patterns.

 Now, let’s take it a step further and learn how to identify high probability trading setups with it.

 Recall: 

You don’t want to trade any candlestick patterns in isolation because it doesn’t offer an “edge” in the markets. 

So here’s how you do it… 

1. If the market is trending higher, then wait for a pullback towards Support 

2. If the price pullback towards Support, then wait for a bullish reversal candlestick pattern 

3. If there’s a bullish reversal candlestick pattern, then make sure the size of it is larger than the earlier candles (signalling strong rejection) 

Here are a few cherry-picked examples:

Morning Star:


Bullish Engulfing Pattern:

Bullish Engulfing Pattern:

Note: There will be losing trades as well and this is not the “holy grail”. 

Now, let’s move on…

 

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