Pattern Of Light in the Clouds is a combination of candles that refers to inverting graphic models. This means that it gives the trader a chance to determine the trend reversal and use it.
It is considered quite powerful among other well-known patterns, which gives traders the right to use it independently, without combining with other well-known trading indicators. The gap in the clouds is very often confused with three other patterns. However, experienced market participants know that the cloud gap is a reversal, and the other three point to a continuation of the trend. Here’s a closer look at the pattern.
How to draw a conclusion about the formation of a skylight pattern in the clouds?
In order not to confuse this pattern with others, it is important to be clear about the factors of its formation. We’ve put all the most important things on one list. Thus, the gap pattern in the clouds arises if the chart:
is a noticeable downward trend of the quotation; red candle began to form (it is also called a bear); the opening of the next candle occurred well below the minimum red bear candle; the body of the last candle closed at least half the body of the first red candle (if closed less than half, it is worth drawing conclusions about the duration of the trend, not about its reversal). The
Luzing pattern in the clouds also has psychological motives to come up. Let’s start with the fact that it arises during a certain downward trend, and the red candle pattern and price breakdown during the next trading day only reinforces the downward trend in the market.
This is after the bulls are activated and by the end of the trading session closes much higher than closed yesterday. At this point, bears fix unprofitable and profitable short trades. Reversing the trend in this situation provokes market control by bulls, that is, the opening of long trades. Image copyright
Image caption Luvet pattern in clouds: similar patterns
If you want to draw any conclusions about the importance of the light pattern in the clouds, compare it with the curtain of dark clouds. Just remember the mirror image. In this case, the strength and performance of the first can be traced more qualitatively than ever.
The more white the candle closes the black (body only), the stronger it is considered a trading model. When it comes to candles, you can draw many individual conclusions by comparing them with each other. But we should not forget that Japanese candles are characterized by a huge list of commercial models that are very similar. So it’s easy to make a mistake.
To make the trading process more efficient, analyze the market as accurately and accurately as possible also do not forget to keep an eye on current trends in market analysis.
Pattern of the post pattern in the clouds: what it is and how it is applied first on G-Forex.net.