Price Action & Income presents... 

Triple Threat Trading 

Patterns 
My Top 3 Candlesticks for Trading Reversals 

By Senior Trader & Technical Analyst, Richard Krugel. 

 
  

Thanks for downloading my eBook!

My name is Richard Krugel, and I’m the Senior Trader and Technical Analyst 
at Price Action & Income. 

Before we dive in, I want to give you a brief backstory about the concepts 
you’re going to see in this eBook. 

Firstly, I am a r​ eal​ trader that trades for a living. Like so many traders out 
there, I had a ​very​ difficult path to becoming consistently profitable. 

After spending thousands of dollars on gimmicks and so called “expert 

advisers,” trying to make an honest living from trading, I was at wit’s end. 

So I started developing my own strategy.  

I combined a few powerful analytical techniques that compliment each 

other very well, and after a few years of rigorous back testing and 
experimenting, it resulted in a low-risk, high-yield strategy that has 
performed extremely well for me over the years. 

I’ve always wondered how much money, time, and effort I could have saved 
if I had my strategy sooner—which is why I genuinely market my strategy:  

To help fellow traders understand price action for what it is, and to trade it 
with discipline. 
 

 
 
  

There are hundreds of candlestick patterns, do I really 

need to memorize them all? 

If you run an internet search on candlestick patterns, you'll get a wide and 
dizzying array of results: 

Strange names, formations, iterations, and variations… And you can forget 
trying to remember them all. ​So what's a trader to do with all this 
information? 

In my humble opinion, well... ​Nothing. 

The truth is, you don't need to memorize—or recognize—even a fraction of 
that junk. 

When I'm analyzing a market, there are only 3 candlestick patterns that I 
follow. 

Over the last decade, they have proven to be the most accurate at 
confirming entries at the areas I want to trade. 

In this eBook I will present to you a quick overview of these patterns, and 
how they can be used within a strategy to g
​ reatly ​improve your trade 
performance. 

 
 
  

*Please Note​: My trading methodology is aimed at achieving one specific 

goal: 

Finding the end of corrections and entering low risk trades when the trend 
resumes again. 

Before You Get Started…

 
Please remember that this eBook will only scratch the surface of what 
you’ll need to know to truly m
​ aster​ market structure. 
 
Yes​, it’s extremely important to understand the concepts in this eBook, but 
you’ll still need to work hard to develop the rest of your strategy and the 
rest of your knowledge. 
 
If you want the shortcuts to ​really​ master this stuff, I put together a 2-hour 
video training that will show you how to use these reversal patterns as part 
of a low-risk trading strategy for a
​ ny​ market condition. 

You’ll be ​fully​ immersed in the approach I’ve been perfecting for over ten 
years, and you can get lifetime access to the training for just $21.  
 
Click here to check out my Reversal Patterns & Entry Points class. 

 
  

 
Triple Threat Trading Patterns 
 
Traders watch candlestick formations to provide them with clues of what 
the market they are trading might do next.  
 
These formations can tell quite a story, ​especially​ when they appear at 
important areas or levels that traders watch for reversals. 
 
There are only three candlestick patterns that I look for, however, and that’s 
because they’ve proven to be ​incredibly​ accurate at confirming entries at 
areas I want to trade.  
 
They are: 
 
Reversal Candlesticks* 
Hammer Candlesticks 
Flanked Doji’s* 
 
*Please note that I’ve simplified the process of naming these patterns 
because, again—we want to keep things simple. 
 

 
  

1. Reversal Candlesticks 

Bullish Reversal Candlestick 

 
The image above shows a bullish reversal candlestick, and you'll notice that 
it's a singular candle formation. 
 
Here's what a bullish candlestick is telling us: 
 
Price made a new low, but selling pressure very quickly dried up as an 
increase of buyers entered the market, resulting in the candle closing high 
off its lows, signaling buying strength. 
 
 
 

 
  

Bearish Reversal Candlestick 

 
The inverse is true with this type of formation in a bearish scenario, and the 
image above shows that price made the highest high before reversing and 
closing strongly lower off its highs. 
 
Here's what a bearish candlestick is telling us: 
 
Price made a new high, but buying pressure very quickly dried up as an 
increase of sellers entered the market resulting in the candle closing lower 
off its highs, signaling selling strength. 

 
  

 
2. Hammer Candlesticks 

Bullish Hammer Candlestick 

 
These candles are easy to spot and they generally have taller wicks than 
their bodies, resembling a hammer's handle and head. 
 
They tend to close without (or with very little) upper wicks. 
 
Here's what a bullish hammer candlestick is telling us: 
 
Price opened near the highs of the candle and although sellers initially 
succeeded at pushing price lower, they lost the final battle when buyers 
tipped the scales in their favor again by closing price higher than the 
opening price. 

 
  

Bearish Hammer Candlestick (AKA Inverted Hammer) 

 
These bearish formations are simply upside down hammers, and are also 
known as inverted hammers. 
 
Here's what a bearish hammer candlestick is telling us: 
 
Price opened near the lows of the candle, and although buyers initially 
succeeded at pushing price higher, they lost the final battle when sellers 
tipped the scales in their favor again by closing price lower than the 
opening price. 

 
  

 
3. Flanked Dojis 

Bullish Flanked Doji 

 
These reversal patterns are formed with 3 candlesticks, the middle candle 
being the doji candle which is then flanked on either side by two larger 
candles. 
 
Doji candlesticks generally show up at areas of indecision and are defined 
by their very small bodies, which tend to form around the middle of the 
candle's length. 
 
Here's what a bullish flanked doji is telling us: 
 
 
 
 
  

 
 
Price came down strongly into an area when sellers were dominating, but 
there was a period of indecision at the next candle because price went up 
and down, not finding any real direction. 
 
This indicated a balance between buyers and sellers, and at the very next 
candle, buyers tipped the balance in their favor and immediately moved 
price back up again. 

(Bearish variationon on next page)

 
  

Bearish Flanked Doji 

 
The opposite is true in the case of a bearish flanked doji, and in this 
example, the doji had a very small body where the bullish example had 
none. 
 
Here's what a bearish flanked doji is telling us: 
 
Price moved up strongly into an area when buyers were dominating, but 
there was a period of indecision at the next candle because price went up 
and down, not finding any real direction. 
 
This indicated a balance between buyers and sellers, and at the very next 
candle, sellers tipped the balance in their favor and immediately moved 
price lower again. 
 

 
  

 
 

Entry Confirmation Example 

 
Using candlestick patterns to confirm areas where price might reverse is a 
good addition to any strategy, but when you add additional entry conditions 
it becomes n
​ early bulletproof. 
 
And that’s because filtering out the bad setups is half the battle when it 
comes to consistency in trading. 
 
What follows is an actual example of how I used these candlesticks and 
additional confirmation criteria t​ ogether ​to enter a great trade. 
 

 
  

 
 
My first chart shows a familiar corrective pattern that I love to trade called 
a Triangle Correction.  
 
This one in particular is called an Ascending Triangle, and knowing how 
they develop helps me tremendously when it’s time to pinpoint where the 
correction is most likely to end AHEAD of time. 
 
Remember:​ My strategy is based on joining the dominant trend at the end 
of corrections. 
 
By combining my knowledge of multiple types of corrections with 
additional techniques like market geometry and market structure, I am able 
to enter trades with very little risk and large profit potential. 
 
As you’ll see in this example, I even go one step further and apply rules to 
my entries in the form of specific entry conditions that I need to see first. 

 
  

My first rule is that price needs to be at an area of market geometry or 

Fibonacci level.  
 
On the chart above, we can see that price touched my 0.786% Fib 
retracement line that I measured between label C and D.  
 
I knew ahead of time that wave E should end around one of my Fib levels, 
giving me a trade setup that should signal the end of this correction. 
 
If the first rule occurred, THEN I would have to see momentum divergence 
next at that level.  
 

 
  

 
 
My second rule was fulfilled when price came down the second time 
around and touched the 0.786% Fib level on declining momentum. 
 
My third rule involves—​you guessed it​—reversal candlesticks!  
 
Look at how well (when combined with the two rules above) that bullish 
reversal candlestick signaled the ​exact​ end of the E wave, and thus the end 
of this price correction. 
 
My fourth and final rule states that I should be able to afford the risk 
associated with the trade—if I placed an entry order a couple of ticks above 
that reversal candle, with a stop loss order a couple of ticks below it.  
 
(See chart below) 
 
 
 
 
 
 
 
 
 

 
  

 
 

My last chart shows where the entry and stop loss order were placed.  
 
Price never came down again, and that entry was taken from a 5 minute 
chart—meaning that I was able to keep my risk v​ ery low​ without sacrificing 
bigger profit targets on this trade. 
 

 
 
 
 
 

 
  

 
Conclusion 
 
What you’ve seen in this eBook is just an introduction to how I use Market 
Geometry and reversal candles to pinpoint high probability trades with v​ ery 
little​ risk.  
 
Remember:​ Even though these patterns are essential to the process, I use a 
combination​ of proven techniques to form my complete approach. 
 
In the h
​ ighly​ competitive world of trading, stacking the odds in your favor 
requires a strategy that relies on a systematic approach—in which each 
part has an important role.  
 
This allows you to break down price action into manageable, 
“bite-sized”chunks to find entries with very low risk (and ​massive​ profit 
potential). 
 
If you’re ready to see how you can build an entire strategy around these 
techniques, ​you can’t afford to miss my Reversal Patterns & Entry Points 
class​. 
 
I packed a ton of detail into this video-training series, and it illustrates the 
whole process—​from start to finish. 
 
  

 
 
Oh, and before I forget… There’s a bonus video version of this lesson at the 
end of this eBook to get you started! 
 
You’ll find it below, and it’s 100% free just for grabbing my eBook today. 
 
Thanks for reading along, and don’t forget to check out the full Reversal 
Patterns class h
​ ere​. 
 
 
 
 
 
 
 
 
 

 
 

 
  

 
 

Looking Ahead: More of My Methodology

If you’d like to see my ​complete​ trading strategy–plus my own e

​ xact​ entry 
criteria for finding the highest profitability trades that most traders 
completely miss–I ​highly​ recommend my Reversal Patterns & Entry Points 
class. 
 
It’s the next step in learning how to take control of your trades -​ including 
my bulletproof entry strategy​. C
​ lick here to get started for just $21. 

 
  

See a Free Video Version of this eBook: 

Would you rather watch a video version of this eBook?  

Click Here​. 

 
  

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