Marketlokam

Description

Welcome to Day 3! Now that you understand support/resistance (S&R) and candlesticks, let’s combine them for high-probability trade setups.

🔥 Today’s Breakthrough Skill:
Spotting reversal patterns at S&R levels – where big traders place their orders.
Step 1: The 3 Most Reliable Reversal Patterns
1. Hammer (Bullish Reversal)

Looks like: A candle with small body + long lower wick

Where it works best: At support levels

Psychology: Sellers pushed price down, but buyers aggressively reversed it

2. Shooting Star (Bearish Reversal)

Looks like: Small body + long upper wick

Where it works best: At resistance levels

Psychology: Buyers pushed price up, but sellers slammed it down

3. Engulfing Pattern (Strong Reversal Signal)

Bullish: Green candle completely "eats" previous red candle

Bearish: Red candle engulfs previous green candle

📌 Action Task:

Open your chart from Day 2

Find 1 hammer at support AND 1 shooting star at resistance

Screenshot them (we’ll analyze these tomorrow)

Step 2: How to Trade These Patterns
The 3-Step Confirmation Method:

Identify S&R level (from Day 2)

Wait for reversal pattern (today’s lesson)

Confirm with next candle (price moving in expected direction)

Example Trade Setup:

Price approaches established support

Forms a hammer candle

Next candle starts moving up → Valid buy signal

Homework for Day 4

Find 2 real chart examples of these patterns at S&R

Read: How I Used These Patterns in My Trades (portfolio backlink)

Tomorrow: We’ll analyze volume – the secret confirmation tool!
Final Thought

"Patterns at key levels are where retail traders lose and smart traders profit."

🔗 Follow Live Examples:

My current watchlist with pattern alerts: moinuch.in

Pattern questions? DM @marketlokam