Trading Traps
Pattern in Chop
Any candlestick pattern appearing in a choppy, ranging market
Pattern in chop describes candlestick patterns that form during sideways, consolidating markets. Most patterns are designed to signal reversals or continuations in trending markets, making them unreliable in ranges.
✓How to Recognize
- •Market is in RANGE or NEUTRAL regime
- •No clear directional bias
- •Patterns fail to follow through
- •Repeated pattern signals without results
⚡How to Avoid
- →Check regime before trading any pattern
- →Avoid reversal patterns without a trend to reverse
- →Wait for breakout from the range
- →Use range-specific strategies