You’ve learned what are continuation candlestick patterns and how it looks like.
Now, I’ll teach you how to identify high probability trading setups with these patterns.
Here’s how to do it…
1. If the market is in a range, then wait for it to breakout out of Resistance
2. If the market breaks out of Resistance, then wait for it to form a continuation candlestick pattern (like Rising Three Method or Bullish Harami)
3. If the market forms a continuation candlestick pattern, then go long on the break of the highs
4. And vice versa for short setups
Here are a few cherry-picked examples:
A variation of the Falling Three Method on USD/ZAR:
Rising Three Method and Bullish Harami on EUR/USD:
Great!