Commander in Pips: Excellent analysis – couldn’t do better by myself. So, let’s go further: Chart #3 Pipruit: And here, Commander, I think we finally get what we want – a Shooting Star pattern, that confirms resistance of 0.5 Fib level. Also it acts as a Wash & Rinse of previous highs and 0.5 level itself. You’ve warned me about this possible scenario, and as I already know – W&R itself is a pattern. So, I think I enter short here with stop loss above the high of Shooting Star – according to rule of trading candlestick patterns. Commander in Pips: Well, at least your explanation is very logical and you have a reason to enter Short. Here is what has happened then: Chart #4 Pipruit: Wow, Commander – I see that our Shooting star later has become a second candle of an “Evening star”. A bit later I see the appearance of a Bearish Engulfing pattern that confirms resistance. My pattern has been triggered and my stop is still untouched. Commander in Pips: Yes, all things look nice yet. Your position is in profit. And here is a final chart: Chart #5 Pipruit: Cool! Finally, I’ve made a profit, although on paper. Still, Commander, this is just a hindsight view? I suppose that it will be much difficult to do in real time… Commander in Pips: You’re absolutely right about that. But I moved the chart gradually, so it was almost the same as real life. Besides, our purpose here is to teach you – what to watch for and how perceive very shallow nuances that could give you extremely important prompts, that other traders do not see or do not pay attention to. Pipruit: I understand. Commander and where is a better way to close the trade? Commander in Pips: It doesn’t matter here, but there are a lot of levels, where you can do that by applying your current knowledge – the first area is the 0.382 level where the market has formed bullish engulfing near the end of 2009, then a bit later you can see a Hammer-Doji in January 2010 and then in April 2010 a lot of bullish patterns side by side – Hammer and two Inverted Hammers.