Open the charts that you are planning to use and look for any candlestick patterns that look reliable. When you find a chart that contains a promising pattern, then save it and also take a screenshot of the time frame. Identify the pattern and memorize the direction in which the trade should go. On the image below you can see the candlestick pattern I spotted when I took a look at the charts that come with the crude oil asset.
The candlestick pattern in this case ss called bearish harami and it shows that the asset is most likely bearish, so its price should keep going down. You need to get the expiration time right as well, so keep a close an eye on the time frame and determine the best settings for your situation. However, in this case the Touch strike price should follow the direction of the reversal pattern, while the No Touch strike price must stay above the high points of the candlesticks that are included in the reversal pattern.
Author: Sandra Leggero Sandra has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. Related News.