Bullish and bearish engulfing, morning and evening star patterns, and the bullish and bearish kicker have become well known among traders everywhere as common candlestick reversal patterns. There is more but they are some of the more popular patterns to trade.
Reversal patterns have become synonymous with candlestick charting but if you’re using them as a tool for trend reversal recognition only you’re missing half of the benefit candlesticks give.
Trend trading is undoubtedly the safest method of active trading. We’ve all heard the old adage, "the trend is your friend" and it’s as true today as was when it was first uttered. Candlestick reversal patterns can alert the trader to trend continuations with as much reliability as any method available. The best part is it is also one of the simplest methods available today.
Over a year’s time the market spends most of its time trending. Since most currencies and stocks follow the market doesn't it makes more sense trading with the trend than constantly looking for a reversal? Even if you’re a swing trader, you can ride the price through the next leg up and exit on the first bearish candle.
This method of trading works extremely well and is one of the methods taught in Candlestick Trading for Maximum Profits.
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