The thing about waiting for the reversal candlestick pattern happening around this support level is so that we can enter the trade with a more higher conviction, rather than trying to enter right now when it’s at the support level when there’s a 50/50 chance. Of course, there’s pros and cons to entering right now at the support, or waiting for the reversal to happen before you get into the trade.

The pros of course is when you see the reversal happening, is that the chances will be high already, but of course the downside of waiting for the reversal to come in is that when you decide to go in, the reward to risk ratio will not be as good compared to if you buy right now when it’s at a support level and you assume that it’s going to bounce off this support level.

Alright? So there’s no right or wrong answer. It’s really about knowing the pros and cons and decide which one you are willing to live with

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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