Define the shape consistently

Engulfing patterns compare adjacent bodies, hammers emphasise a long lower wick, and doji have similar opening and closing prices. Definitions vary in detail. Fix the criteria before classifying examples.

Location changes the interpretation

A long lower wick after a decline need not mean the same thing as one inside a narrow range. Consider preceding structure and later closes. A single shape does not confirm reversal.

Include failed examples

Keep examples that stall, reverse or prove costly to execute, not only successful screenshots. This gives a more balanced view of applicability. Recognising a pattern and implementing a trade remain different tasks.

Timestamp the observation

An intrabar doji may develop a substantial body before the close. Record the time frame, capture time and whether the bar is complete. Without these details, ordinary changes to an unfinished candle may be misread as a failed signal or faulty data.

Source and reading notes

This is an independently written educational overview based on the ATFX reading linked below. Examples are illustrative, not live quotes or forecasts. It does not reproduce the original article or imply endorsement by its author.