You must be wondering what are the ‘Oops’ candlestick patterns that the title is talking about. The ‘Oops’ patterns occur when traders find out that they are in the wrong side of the market and finally say to themselves ‘Oops, I am in a wrong trade’ and they quickly get out of their trade and enter the opposite direction.
What is happening above is the psychology of the trader and you can tell them from your chart.
Below are some of the Oops candlestick patterns that you should be looking out for to help you in your entry and exit.
1) Railway Track (Tweezers) – For this pattern, you will see 2 long candlesticks with different colours. The first candlestick is formed by traders chasing after the market pushing it higher and the second opposite candlestick with similar length is formed when most traders know that they are in the wrong side of the market and then decided to exit their trade and enter trades in the opposite direction.
2) Doji Morning/Evening Star – For the evening doji star, you will see a long up follow 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’ pattern as they are a good reversal patterns.
3) Hammer/Inverted Hammer – The hammer and the inverted hammer are also caused by Oops psychology. For the hammer and inverted hammer, it shows that the traders are responding very quickly and thus the reversal can be seen from the single candlestick.
The above are one of the best reversal candlestick patterns you should take note when you are trading. If you are going LONG, you should exit your position once you see any one of these 3 patterns and vice versa.