You must be wondering what are the ‘Oops’ candlestick patterns that the title is talking about. ‘Oops’ patterns occur when traders discover they are on the wrong side of the market and finally say to themselves ‘Oops, I’m in the wrong trade’ and quickly exit their trade and go in the opposite direction.
What is happening above is the psychology of the trader and you can see it on your chart.
Below are some of the Oops candlestick patterns to watch out for to help you on your entry and exit.
1) railway track (clamps) – For this pattern, you will see 2 long candle holders with different colors. The first candlestick is made up of traders chasing the market pushing it up and the opposite second candlestick with a similar length is formed when most traders know they are on the wrong side of the market and then decide to exit their trade and enter trades. in the opposite direction.
2) Morning/Evening Star Doji – For the evening doji star, you will see a long up candle followed by a doji and then a long down candle and for the morning doji star, you will see the opposite. These 2 patterns are also known as ‘Oops’ patterns as they are good reversal patterns.
3) Hammer/Inverted Hammer – Hammer and inverted hammer are also caused by Oops psychology. For the hammer and the inverted hammer, it shows that the traders are responding very quickly and therefore the reversal can be seen from the single candle.
The above are one of the best reversal candlestick patterns to keep in mind when you are trading. If you go LONG, you should exit your position once you see any of these 3 patterns and vice versa.