1. Direction into the pattern
Look for a meaningful approach rather than a handful of arbitrary candles. A reversal interpretation needs something credible to reverse.
2. Location in structure
Check whether the formation appears near a prior swing, breakout area, or established zone. Location can strengthen the story, while open space may leave it unsupported.
3. Subsequent acceptance
A large candle can still fail. Decide what follow-through would show acceptance beyond the formation and what move would invalidate your reading.
This material is for education only and does not constitute investment advice.