Mystical Lantern Pattern | What is it and how does it work

The Mystical Lantern Pattern is a candlestick chart pattern that shows a strong bullish pattern. The pattern consists of three candlesticks. The pattern starts with a bearish continuation candle, followed by a bullish candle that is higher than the first candle. This second candle is the mystical lantern, as its color is optimism in the market.

Then a third bearish candle is formed. If everything goes like the original pattern, the third candle has a smaller body and a bullish tail, showing that prices reached a higher level but could not hold there. The pattern works most effectively when breaking through a significant support level.

As a result, it is important for traders to make sure that the Mystical Lantern pattern formed represents an important reversal level. If this is true, traders might consider making a buy investment after the pattern forms. The pattern can be used as a bullish indicator, revealing that the asset’s price is rising. It can also act as an alert, meaning that the asset has broken a significant support level and the current trend will turn bullish.

Therefore, the Mystical Lantern pattern is used as a price reversal indicator. It is important to note that the pattern can be inverted to correct the signs. If the second candle is bearish and the third candle is bullish, then the pattern would have signals of a bearish price reversal.

Mystical Lantern Pattern | step by step to do

1. Start with a basic square. Draw the shape of a circle in the center of the square. You can use a compass or draw the circle by hand.

2. Draw four inner lines from the center of the circle and direct them to the sides of the square. These lines will help to mark the axes to draw the concentric rings.

3. Draw two concentric rings, and each ring will grow to about half the size of the first. You can use a compass for this purpose.

4. Alternatively, you can draw the same four concentric rings with the same diameter.

5. Draw four equilateral triangle shapes inside the rings. Use the center line as a reference for the height of each triangle and level them.

6. At the ends of each triangle, draw arcs that give the pattern a flowing appearance.

7. Now it’s time to work on the ends. Draw two circles at the ends of the square.

8. Draw three lines from the center of each circle towards the inside of the rings, just like the lines in step 2.

9. Draw a variable arc between each line and the inside edge of the ring, creating a circular geometric figure.

10. Repeat the process for the three arcs on the opposite side of the square to complete the mystical lantern pattern.

What advantages and benefits of making Mystical Lantern Pattern

1. Convenience in creating original and unique designs: Mystic Lantern Pattern offers intuitive and easy-to-use drawing tools to help you create personalized designs in no time.

2. Time and money saving: Mystic Lantern Pattern saves time and money at the same time, as you can create unique designs without spending as much time as you would to hire an artist.

3. Hundreds of Templates and Designs: There is a wide variety of ready-made templates and designs available in Mystic Lantern Pattern, making it even easier to create custom designs.

4. Creating complicated designs: Users can use Mystic Lantern Pattern to create complex designs, with hundreds of possible variations, allowing you to create much more original and unique designs.

5. Compatibility with other image editing programs: Mystic Lantern Pattern is compatible with most image editing programs, allowing users to create and edit their creations flexibly.

Mystical Lantern Pattern | Final considerations

The Mystical Lantern Pattern is an excellent trading strategy that can help traders profit from the forex market. Although this strategy is high risk, traders who follow it will be able to ride the moves to make consistent profits.

The fact that it analyzes three different timeframes, offering a detailed look at technical analysis, is also an important factor for traders.

On the other hand, the strategy requires basic knowledge and discipline, in order to use its maximum potential. Experienced analysts and high-level traders are the best candidates to take advantage of this strategy.

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