Most courses or books on the subject will teach you the signals and 
maybe a little about using indicators to find a stock at the bottom 
or top of a trend. But what they don't tell you that those same 
signals can happen at any point on any chart you look at. Just as an 
example, lets take the bullish engulfing reversal pattern (shown at 
left). The bullish engulfing pattern is an extremely powerful 
reversal signal and most will tell you that. They show illustrated 
charts that will demonstrate the bullish engulfing pattern that 
formed prior to a nice uptrend as it was found at the bottom of the 
previous downtrend. Well, it's easy to show you what's happened in 
the past as if this happens every time a bullish engulfing pattern 
forms on a chart! What they don't tell you is, this same pattern can 
show itself anywhere on a stock chart...not just at the bottom! Check 
it out for yourself! Find a candlestick chart of a stock that trends 
up and down and see for yourself. You'll find the bullish engulfing 
pattern in the middle of up trends, tops of trends, down trends and 
bottom of trends and only one of those will make you money. The same 
is true for all candlestick reversal patterns.
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