How to combine candlestick patterns
In this video, I will share with you on how you can actually combine candlestick patterns to form a pattern on the higher timeframe.
What happens is that you can actually take multiple candlesticks together, combine them, and it can become another candlestick pattern on the higher timeframe.
And why would you want to do that?
Because sometimes it can actually provide clarity to what the market is doing.
Let me explain…
Looking at this diagram, let's say, that two of the first candle in the left is a 1-hour time frame candle.
If you take the two 1-hour candles (bearish engulfing).
Combine them together…
And what you're going to get is a shooting star or a bearish pin bar in the 2-hour timeframe.
Just to illustrate again…
Let's say, that two of the first candle in the left is a 1-hour time frame candle.
If you take the two 1-hour candles (bullish engulfing), combine them together, and what you're going to get is a shooting star or a bullish pin bar in the 2-hour timeframe.
When you combine two candlestick patterns, it can form another one, which gives you clarity to what is going on in the markets.
And it is clearly telling you that the buyers are in control.
So just a quick recap…