Trading with Advanced CandleStick Strategy Part 3

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Reversal Candle Grouping:
There must be at the very least, five reversal candles before I would consider it a GP. Five candles is the minimum. I would much rather see six or more. Generally speaking, the more reversal candles the stronger the GP.

The grouping itself must not favor any direction. It must basically form a straight line. Now this does not mean it must be perfectly straight, it can move slightly up and then come slightly back down. It is just important that it does not have an obvious bias for any direction.

The strength of a GP is dependent on the amount of candles in the grouping and the preceding trend. If you have a very strong preceding trend that consists of many candles and the grouping itself has 6 or more candles you can consider it a strong GP. You can also judge strength based on other factors like where it forms, but I will explain that a little later.


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