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How To Trade Cradle Pattern
The Cradle Pattern
Normally it should be a signal of reversal of the current Trend.
– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern.
– The Pattern starts with a long and black Candle, during a downtrend (Due to the Traders that are selling because they are worried by the downtrend).
– Then there is a phase of indecision in the Prices (There are Doji Candles, Spinning Tops, Hammer, Inverted Hammer), so the Prices remain in a precarious balance.
– At the end of the Pattern, starts a rise in the Prices with a long and white Candle (That shows the strength of the rise).
Normally it should be a signal of reversal of the current Trend.
– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern.
– The Pattern starts with a long and black Candle, during a downtrend (Due to the Traders that are selling because they are worried by the downtrend).
– Then there is a phase of indecision in the Prices (There are Doji Candles, Spinning Tops, Hammer, Inverted Hammer), so the Prices remain in a precarious balance.
– At the end of the Pattern, starts a rise in the Prices with a long and white Candle (That shows the strength of the rise).
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