How To Trade The J-Hook Pattern

The J-Hook Pattern

Normally it should be a signal of continuation of the current Trend.

– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.

– The Pattern starts with a rapid increase in the Prices. (1)

– Then there is a Candlestick Pattern that gives a bearish signal (So the Traders start to sell). (2)

– The prices fall, then reach a level of “indecision”; at the end of this phase of indecision, there should be a Bullish signal. (3)

– The prices start to rise and they reach the Previous High (The one formed from the Phase (1) ). If the prices keep rising, going above this High, there should be a new Uptrend in Prices.(4)

– If the prices don’t go above the High, the Pattern has failed; in this case the Pattern creates the Double Top Pattern (A pattern from the Technical analysis).