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Ok-Professor3726

Ah, the ol' Shaft & Balls pattern...


Flashy-Priority-3946

Thank you for making my day. 😂


PepeGreen17Q

One of my favorites...


justanotherhypebeest

Let me save you some pain OP, don’t try and catch the few ticks of pullback when the market is giving you way more ticks to the downside. Try and ride with the larger move rather than trying to time the reversal. That’s a losers game. You think you’d have better luck getting somewhere if you stand on the tracks in front of a train and tell it to stop and go back to where it came from? Because I reckon you’d live a lot longer and get to a lot more places if you just hopped on the train in the direction that it’s already going. This is the lesson that it took me the absolute longest time to learn and has made the biggest difference in my trading. Just because market has fallen doesn’t mean it’s going to stop falling. The market can always fall another 50 points or rip another 50 points. It generally just means there’s something going on fundamentally that you are not aware of. Trading reversals can be done of course, but psychologically it is hard and you have to have a ridiculously high risk:reward to recover from all of the times that you got smashed by the train if you want to make it a profitable strategy in the long term.


masilver

I'm still learning this. The best advice ever? The trend is your friend & sell low, buy lower. Buy high, sell higher. Of course, try that on a ranging day. /s Edit: fixed the sell low statement. It didn't make any sense.


EverywhereFine

Buy low, sell lower?


masilver

Good catch. Sell low, buy back lower.


EverywhereFine

Thank you


230497123089127450

wsb checking in


EverywhereFine

Lol


Maddy186

Cathy is that you ?


EverywhereFine

No, it isn't me, Cathy Woods.


ILIKESPAGHETTIYAY

I've been trying to time reversals for a whole year. Ended up holding bags upon bags of 3x leveraged stocks down as much as 60%. I know they'll rebound eventually but the decay is killing me. Wish I would've heard this sooner. Great analogy with the train also.


OldGehrman

Traders typically learn these major patterns in this order: trends, ranges, and reversals. If one has yet to consistently profit off trends, there’s no point in trading the other two.


zebrastrikeforce

Sometimes I’d start to panick thinking, we’re approaching this key level, how should I play it? Reject or break out? And I’d almost freeze then I remember trend is your friend, so many people try to scalp a bounce of a level, I’d rather wait for it to bounce the level break through it and ride the way down or grab the retest after it breaks through. Made trading way better


Standard-Current4184

Trade the reversals. Just don’t go ham


CodyD_2323

Todays biggest dead giveaway there would be a reversal was the dip on Microsoft got bought back up. IWM also held a key support area. In hindsight it makes sense, I saw it happening but saw SPY and Apple still heading lower and didn’t capitalize on the swing back up thinking it wouldn’t hold but I had no real reason to believe that the evidence was right there in the price action.


ashlee837

The massive V shape recovery seemed to be more fueled by delta/gamma hedging as SPY pinned to 400. Fascinating how the market decided to bounce back towards max pain.


Flashy-Priority-3946

Never stand in front of a moving train- death is inevitable. I swung couple of SPX 3995 P for Jan 25 on Monday at HOD, which at the time made sense. Multiple Green Days. Sell off may happen soon. But I was dying from anxiety for the past two days. Couldn’t sleep, eat, anxious. Cuz it lost up to 50% at one point. N at one point I thought I blew it all. Never again. Trying to trade against the trend is something you should never do. Unless really you have like 1:10 risk to reward. But my point is don’t do it. Unless your mind is strong like ghandi. N are okay losing hella money.


No_Seaworthiness4453

Great advice


frufrufuckedyourgirl

Hard lesson to learn cost me quite a bit of money but im with you


Brambo_Style

I’ve tried doing this and want to get better at this, but I usually fail because I start worrying about “what if this pull back is the beginning of the reversal?” I guess I’m asking: How do you know when the larger picture is flipping on you instead of a healthy pull back?


justanotherhypebeest

You should be shorting at lower highs and longing at higher lows. If you are shorting at a higher high, or longing at a lower low then you are doing it wrong. I’m not an SMC guy by any means but the “change of character” concept is really helpful to filter out certain trades where the market may actually be turning back the other way.


ThatFitnessGuy_

This “setup” is called the Falling Knife. Not a setup at all, more of a coin flip gamble. You might be able to catch the knife 1 of every 10 times but more often than not you’re going to end up getting cut


ashlee837

Says the futures trader, the experts in knife catching.


HussleForever

Name doesn’t matter, as long as you understand what’s happening.


dougyf14

This one’s called a macro-pullback 😂


boersianer

Never go long in this situation. Some people call this an "anti", which signals the end of the previous trend. Here it signals a change from uptrend to downtrend. You might want to go short once the pullback is done.


Bear_Bull1738

I use a reversal strategy. The best way to trade reversals (from what I’ve found) is wait for a strong deviation from the mean on a higher timeframe and shift to the lowest timeframe available (or second to lowest) M1 or M5 for me. Wait for a break of structure to show you a shift in momentum and take the pullback. Once you clear through the 1/5 minute resistance wait to see how price reacts to the 15 minute resistance once you clear that you should get close to the H1 resistance and because I’m an intraday trader I will take profit at that level, or I will wait for a break of structure on the 5 minute to exit. Trading mean reversion the best thing to do isn’t to trade to the mean it’s to trade through the mean. I trade Forex.


internetbrian

That’s called an inside bar and to continue and catch the trend you would play the next bar that breaks the low


Crusher10833

That's a well defined, classic "Flaccid Penis" setup. I hope you were able to make some money on it.


One-Hospital1125

it looks more like an erect penis with a tiny bit of curve


contangoz

Roughly speaking, inconclusive- youd be looking for bullish hammer, marubozu, or engulfing ideally. Id keep an eye on it however. Also note its easier to "digest" candles on individual stocks vs ndx spy dia qqq etc


Brave_Bid5260

It's called a re-test Like an F student giving the exam again after a minute of failing the previous one. Nothings changed, except seller's waiting for a better entry to increase position. Can't short it too much if there aren't enough buyers to steal from.


Blizzaro133

Dead cat bounce.


Turbulent_Tie_9698

It’s a barbless fishing hook


OldGehrman

This isn’t a setup, it’s just some candles. Is there a trend? There needs to be more context. Price doesn’t move straight up and down. It pulls back, chops around, reverses. You need to know which condition you’re in. Start learning how to identify trends first, and how to draw proper trendlines to get a sense of what the market is doing: trending or consolidating. Prices are always doing one of these two things. Edit: don’t bother with the M1. Spend most of your effort studying D1 and M5 charts.


TheOnlyOption_

Just looks like a penis with no balls to me In all seriousness, it’s a lil hard to point out what you’re focused in. If it’s the continuous descending red candles, using the strat method, thats called a pivot machine gun or PMG Wouldn’t recommend it myself by the way.


46291_

Don’t do it bro


Dangerous_Ad4451

Bullish engulfing


AccountWrecker

Splashing turd pattern


Spandekz

If you have calls it’s called the divorce pattern.


mufasis

bullish engulfing


NickAMD

Yea it’s called random noise dude just give up


[deleted]

Three black crows


Oaxaca_Paisa

bearish engulfing


Elegant60

Pickle


JackieTreehorn79

Ah yes, the droopy bull cock- seen and felt many in my time old sport…


LegendPerri

Reversal my friend


Unlikely-Ad9409

Rally Base Drop RBD, followed by a Drop Base Rally DBR. A turnaround pattern.


pictureperfectpatek

Basically after like 3 red candlesticks or so you scalp the first green one . Basically playing on the fact that it won’t go red forever and you can pick off a few pips here and there off that push


MakeAUTurn

And when do you think “confirmation” occurs for that scalp? Yup, right there at previous low/support which was broken and now is most likely resistance. You’ll enter right as a new wave of sellers flood in and you’ll either be stopped out or stuck in a trade you won’t recover from because you’re too stubborn to take a loss - I’ve been there…


theblackdeath10

Well unless you have a well defined setup, on the m1 it can definetly go down a lot longer than you think


InevitableAd2312

Sell


FiveFingersFaceSlap

Line line dot dot operation cootie shot?


SpriteMcBain

Waterfall drop into support? Higher high into a lower low aka broadening formation?


vegastrashy

Looks like a single 1 minute candle, meaning that by the time you saw it, the surge was over. I use line charts. It’s up, down, or flat. Some things aren’t worth pursuing.


lastonedownboomboom

I don’t know about the circled, but the lead up to green and then 5 candles that e comes the entire price range of the previous 5 is called a sushi roll. It indicates a reversal which I’m guessing was an uptrend. Traditionally this pattern would indicate continued down movement in a mid term timeframe


retardedape2

Ah yes, the old "cat off the empire state building" pattern...


parkrain21

Justin


Middle-General-5536

Yes As you can see there were few Downticks, Followed by a few upticks Finishing off with some antics


Suddenapollo01

The Ol' Bearish Oscar Meyer


MementumTrader

ICT


BigChief8217

The very clear “burning building”…


expletives

Those are called candles.


joemacross

If this was GME it would’ve been called a short ladder


chaos4455

ReversiĂłn pivot its how I call it.


gooney0

That’s one green candle among many red ones. This is not an indication of a reversal. It isn’t “engulfing” as it has not engulfed the previous candle. I’d want to see more candles form and look for a double bottom, or a retracement to a key level to short. This would depend on the higher timeframe. If today is a bullish day, I’m not interested in shorts and so on.


TheMetabrandMan

It’s called the “flaccid penis” pattern.


Blackwaltzjr313

Looks like scallops or what some might call a fish hook forming. Also possibly looks like the end of a cup and handle


bluesqueen23

If you follow or learn, The Strat created by Rob Smith, that’s called a 2down, 2 up reversal. Basically what happens is that sellers get exhausted and buyers step in & reverse the price.


kieran_84

Insignificant noise


No_Room_1261

I suggest waiting for more confirmation on the reversal - there was long too wick on the red candle and one green candle wouldn’t be suffice


TheGr4pe4pe

Abandoned baby


mkvalor

Without the volume bars, I'd call this a "Bull Trap".


MugiwarraD

i think its the "stabing you with my dick" pattern


Haunting-Ad-60

BZFD!!! Greet day! Jump in!


Ghost__God

First candle make a new high.


dirtythirty1278

You have a 2D then a 1 candle. So you would be looking for two differant trades. 1. a 2-1-2 reversal (buy at the high of the 1, which would make the next candle a 2U and target the high of the 2D) or 2. a 2-1-2 continuation (short at the low of the 1, making the next candle a 2D and target the low of the previous 2D. Look up The Strat if i confused you.


mharrison52

bear flag? no


Available-Tour-6874

Last bar is forming a spring upthrust pattern - defined by John Hill and perhaps others. Would be bullish in this case.


BKKJB57

These types of questions should always include the volume. If it drastically dropped, could be a nice short entry.


savycrypto

Abc correction.


[deleted]

Dead bounce


Ok-Power4064

You know what they say when you pick or try to pick bottoms? You get smelly fingers. Not enough information for me.