Reversal versus Continuation Patterns Reversal and continuation patterns have been separated into different chapters. This chapter covers the reversal patterns and Chapter 4 covers the continuation patterns. This separation was done to add convenience and simplify future reference. | Chapter 3 Reversal versus Continuation Patterns Reversal and continuation patterns have been separated into different chapters. This chapter covers the reversal patterns and Chapter 4 covers the continuation patterns. This separation was done to add convenience and simplify future reference. This is mentioned here because the determination of bullish or bearish implications has to do only with continued price action and not with previous action. Previous price movement helps to determine only the pattern not its ability to foresee or anticipate future i ii price movement. Whether a reversal pattern or a continuation pattern investment and trading decisions still need to be made even if it is the fact that you decide to do nothing. Chapter 6 deals with this concept at length. There is a normal expectancy to have a bullish pattern or situation prior to a bearish counterpart. That tendency will continue here except when one counterpart tends to exhibit greater prevalence then it will be covered first. Chapter Format Most of the candle patterns will be explained using a standard format that should ensure easy reference at a later date. Some candle patterns will not be covered as thoroughly as others because of their simplicity or similarity to other patterns. Some patterns are only modified versions of another pattern and will be noted as such. Since many patterns have a counterpart reflecting the other side of the market some of the scenarios will contain only one example. Additionally some repetition may seem to occur. This too is done so that later reference will be both easy and thorough. The usual format will be 20 Reversal Candle Patterns Pattern name Japanese name and Interpretation The romanized Japanese name and meaning if known Comment on whether confirmation is required or suggested Commentary Description of pattern s Western traditional counterpart s Graphic of classic pattern s Detailed drawing of the classic pattern days that can be either black or white
