Many candles have a defined price trend that leads to the start of the candle pattern. For example, a hanging man appears in an upward price trend, and a hammer appears in a downtrend. How do you determine the trend? I use a 10-day exponential moving average as a starting point and season it with special rules to allow price trends of a day or two to override the result. The method is a bit complicated but it works well. It is, however, not perfect, but the large sample size I use helps.
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