A trader should wait for the signal confirming the pattern formation.
The Stick Sandwich candlestick pattern is a bullish reversal pattern which usually confirms a reversal of a trend.
The Kicking candlestick pattern can be either bullish or bearish and it is not necessary to be confirmed. This pattern looks similar to the separating candlestick pattern. However, the difference between these patterns is that the Kicking pattern shows a gap in the opening prices instead of their parity.
The Homing Pigeon candlestick reversal pattern is a bullish formation which looks like the Harami pattern. The difference is that the Pigeon has two candlesticks which are usually black.
The Three Stars in the South is a bullish reversal pattern which indicates a gradual weakening of a bearish trend as the intraday price dynamics gets less robust while daily lows move higher. The key point of formation of this pattern is a long lower shadow on the first day as this is an obvious sign of increased buying interest.
The Three Outside Up and the Three Outside Down patterns serve as a confirmation of engulfing patterns. They look similar to the Three Inside Up and the Three Inside Down patterns, as well as the Harami pattern.
The Three Inside Up and the Three Inside Down confirm the Harami model as the first two days of these two patterns are the Harami itself. The third day of the pattern confirms the closing price in any trend, bullish or bearish.
The Two Crows is considered to be a reversal or bearish pattern. An upward trend is supported by a long white candle. The next day, there is a small gap up, however, the trading day closes on the lowest price of the day, but higher than the first candle.
The Breakaway is a pattern formed during a bullish trend (uptrend) that indicates a start of sales. Sometimes the price moves into the oversold area. The figure opens with a long black day followed by another black day, with a candle having an opening gap. After the down gap, other three candles lead to lower prices. The Breakaway consists of black candles except for the third day that can be either black or white. The three days that follow the gap resemble the Three Black Crows pattern as their highs and lows form a descending sequence. The last day engulfs small black bodies of the preceding days completely.
The Identical Three Crows is a candlestick pattern indicating a bearish reversal. It is a special case of the Three Black Crows pattern. The difference is that in the Identical Three Crows, the second and third black days open at the closing level of the previous day. A marginal gap is also possible.