Open Loot (OL) revolutionizes web3 gaming with seamless blockchain integration, NFT marketplaces, and a user-friendly experience.

In 2021, Big Time Studios made headlines with its popular multiplayer play-to-earn game, 

 (BIGTIME). Not only was the project's team filled with gaming veterans associated with famous games such as 

Open Loot's utility token was launched on Nov 19, 2024, allowing those who accumulated 

 (OLRP) to convert them into OL tokens and unlock exclusive benefits.

Let's learn more about Open Loot and how it's shaking up things in the 

 is a web3 gaming ecosystem that includes a distribution platform and marketplace designed to enhance user experience, scalability, and payments for players and developers. 

The platform is owned by Big Time Studios and manages all aspects of the hit web3 game 

The brain behind the project is Ari Meilich, the gaming legend who brought 

 (MANA) to the crypto space in 2017, and co-founded Big Time Studios in 2020. Open Loot aims to eliminate the complexities associated with launching blockchain games by creating a vibrant player-driven marketplace. Players can enjoy seamless gaming without the hassle of connecting wallets, paying gas fees or waiting for transactions to process.

Its NFT marketplace includes NFT rentals and a marketplace for non-crypto game currencies, a feature that has appealed to Web 2.0 gamers, which in return makes the project scalable. Game developers can leverage Open Loot’s out-of-the-box solutions to launch their games and also take advantage of the platform’s advisory services to consult regarding token design, marketing and overall gaming development.

 is OL, which can be earned through various in-game activities and participation in special events.

Open Loot leverages blockchain technology to enable the creation and management of player-owned economies within games. The following is an overview of its operation.

Open Loot offers an end-to-end solution for launching games with robust web3 economies. It handles all NFT and token management, allowing developers to mint and distribute crypto-based digital assets within their games. This integration simplifies the process of incorporating blockchain elements into games without requiring extensive blockchain expertise.

The Open Loot ecosystem features a marketplace in which players can buy and sell Open Loot NFTs through direct sales and auctions. Transactions can be conducted globally using cryptocurrencies, debit and credit cards or bank transfers, providing flexibility and accessibility to a broad user base.

Open Loot's patented Vault technology enables players to effortlessly manage blockchain-based digital assets. This system supports instant transaction settlements without gas fees, enhancing the user experience by eliminating common blockchain-related complexities.

Gaming developers can collaborate with premier creators and influencers to generate powerful content, and leverage automated marketing through scale-proven and go-to-market strategies and opportunities to speak at AMAs in the gaming community.

In addition to its team of notable gaming veterans, Open Loot has entered into strategic partnerships and already has five games associated with the platform.

, an AAA-quality NFT game in which players explore space and even build their own personalized metaverse. The other games are 

Another notable game associated with Open Loot is the 

 Telegram game, in which players engage in a time-bending adventure on their mobile phones.

Open Loot (OL) is the native token for the Open Loot platform. It’s designed to increase platform activity, enhance user acquisition and boost engagement across Open Loot’s games and products. The token’s utility is as follows:

 whose supply is capped at 5 billion. Tokens are to be distributed as shown below:

Open Loot is holding an OL TGE airdrop designed to reward its most active users with OL tokens. Users who earn OLRP from their activities on the 

 game and in the Open Loot marketplace can convert their OLRP to OL.

You can only convert OLRP points into OL tokens after holding them for ten days, at a ratio of 100:1 and a maximum of 30,000,000 OLRP per day (300,000 OL). Note that OLRP will expire in two years. Hence, it’s imperative to convert them before the expiration date.

You can earn OLRP through in-game activities, such as opening Epoch Chests and the Showdown Tournament on the 

 game. You can also earn OLRP from social media activities, by playing the 

Telegram game and by being in the top 5 on the 

You can buy OL tokens on Bybit as USDT Spot pair (

). The OL Spot pair can also be traded via Bybit's 

. To celebrate the OL Spot listing, Bybit is holding two special 

The first event is exclusive to new users. To participate, 

 and get verified, then accumulate a deposit volume of at least 2,000 OL or deposit 100 USDT and trade 100 USDT worth of OL via your first trade using your Bybit account.

), register and trade at least 500 USDT worth of OL on Spot to earn a share of the 2,000,000 OL prize pool.

Both events run from Nov 19, 2024, 6AM UTC through Dec 3, 2024, 6AM UTC.

Open Loot’s robust infrastructure is good for the gaming space, where it accommodates both Web 2.0 and web3 users. Developers can seamlessly launch games through the platform and receive technical support. With the success of 

, Open Loot is one project to watch in the web3 space.

Beginner

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Open Loot (OL): The Key to Frictionless Web3 Gaming

What does a strong BTC price mean to the broader Bitcoin ecosystem?

The conversation around the Bitcoin ecosystem has returned as the price of BTC reached another all-time high, over $90,000, for the first time in November 2024. High expectations from a pro-crypto U.S. administration, a fresh easing cycle from the Fed, strong demand for crypto ETFs and institutional adoption could all be driving forces behind BTC's strong performance.

On the other hand, the performance of the Bitcoin ecosystem projects and their related assets was mixed. The 

 of Bitcoin DeFi reached a new high, while the floor price of most ordinal inscriptions didn’t follow BTC's strong momentum.

In this article, we’ll look into what BTC record performance means to the broader Bitcoin ecosystem. The possibility of BTC's strong momentum creates tailwinds for sub-verticals within the ecosystem, and the chance of speeding up the adoption of Bitcoin scaling technologies as interest increases. 

 (DeFi) for Bitcoin could be one of the sectors that benefit from a high BTC price. Bitcoin DeFi is an emerging sector within the Bitcoin ecosystem that aims to leverage Bitcoin's security and infrastructure for DeFi applications. 

 (TVL) of Bitcoin DeFi has reached over $4 billion for the first time as the price of BTC surged to over $90,000. With BTC's price expected to rise further, overall liquidity in the Bitcoin network could increase and more BTC could be locked into DeFi protocols.

Figure 1: TVL of Bitcoin DeFi has reached $4 billion for the first time. Source: DefiLlama

 are some of the popular narratives among Bitcoin DeFi. These related projects are expected to benefit from increased interest, activity and liquidity in the Bitcoin network. For example, some BTC holders could look to generate yield from their idle holdings. BTC's increasing value might encourage some other holders to mint and use BTC-collateralized stablecoins.

The current bullish sentiment may create a positive feedback loop. Rising prices could fuel investors' optimism, driving further investment into the Bitcoin ecosystem and potentially leading to a self-sustaining growth cycle.

If the demand for Bitcoin DeFi is set to increase, the interest in Bitcoin's scaling solutions might also increase. That's because developers could take advantage of the market attention of the world’s leading crypto, as well as some of the recent technology breakthroughs under the hood, to build (

) on Bitcoin. This would especially apply to expanding Bitcoin’s 

 (L2) solutions, allowing the blockchain to handle transactions more efficiently. On top of that, building sophisticated 

Figure 2: TVL of Stacks — a major Bitcoin L2 — recovering from Q2’s decline. Source: DefiLlama

, a Bitcoin L2 that provides smart contract capabilities for the Bitcoin blockchain, might see increased interest. Data from DeFillama shows that Stacks' TVL has been gradually recovering from Q2's decline, and

, its native token, has posted a 20% YTD gain.

In addition, a strong BTC price could benefit BTC-related infrastructure. Projects such as 

, a Bitcoin-based noncustodial wallet that allows users to store and manage assets on Bitcoin, and Nomic, which bridges Bitcoin to the 

 ecosystem, could see growth due to the increased demand for interoperability, allowing Bitcoin to be used in DeFi ecosystems beyond its native network.

Ordinal Inscriptions Struggle to Regain Traction

 were some of the important narratives in the Bitcoin ecosystem in 2023. However, Ordinal inscriptions weren’t immune as the market trend turned sour in Q2 2024. As the price of BTC has rebounded, some of the ordinal inscriptions seem to have struggled to regain traction. Figure 4 shows the floor price of Runestone, which is the third-largest market cap ordinal inscription collection on CoinGecko. It hasn’t seemed able to follow BTC’s recent strong momentum, at least not yet. Although some other collections may have shown some traction recently, its floor price is still quite far from its previous peak.

Figure 3: Total market cap of NFTs on Bitcoin. Source: CoinGecko

Figure 4: Floor price of Runestone over time. Source: CoinGecko

BRC-20 tokens seem to be in a similar situation. For example, 

 have a $1.3 billion combined market cap, and take up over 80% of the total BRC-20 token market cap. They’ve been struggling to follow BTC's uptrend and largely remain in the same trading range that they’ve been in for months, notwithstanding some recent short-term rebound.

Philosophical Difference Could be a Challenge

The future development of the BTC ecosystem could still face multiple challenges — despite all the innovations that have been pushing the boundaries of the oldest blockchain — and community division is a major challenge.

There's still a philosophical debate within the Bitcoin community about whether Ordinal inscriptions and BRC-20 tokens align with Bitcoin's original purpose. While Bitcoin's 

 (or "digital gold") narrative is widely accepted in the community — and has even begun to win buy-in from the mainstream — Ordinal inscriptions and BRC-20 tokens may often be seen as more risky and speculative by nature, especially if they don't offer significant advantages. This contention could pose a challenge for both Ordinal inscriptions and the BRC-20 standard, at least from an investment perspective.

Suppose the market perceives Ordinal inscriptions and BRC-20 tokens as less useful or integrated into financial ecosystems such as BTC. In that case, their value may not be fully realized by the market, and their liquidity might also not be as high as for BTC — meaning price movements could be more volatile and less directly correlated with BTC's price. In that scenario, even a skyrocketing BTC price may not be able to directly benefit the Ordinal inscription space and BRC-20 tokens.

On the other hand, Bitcoin DeFi is painting a relatively rosier picture. Since Ethereum-based DeFi has been around for a long time, the concept is easy to understand and is being tested in the market. Extending that into the Bitcoin blockchain thus seems more digestible. Besides, the demand for staking, restaking, native yield and BTC-backed stablecoins has been increasing in proportion to the price of Bitcoin. At the same time, recent tech innovations seem to cater more to DeFi activities on Bitcoin, rather than improving the user experience of Ordinal inscriptions and BRC-20 tokens. 

The impact of Bitcoin's record-high prices extends far beyond mere numbers on charts. As we've examined throughout this analysis, a rising BTC price could create a cascading effect across the entire Bitcoin ecosystem. However, it's crucial to recognize that sustainable ecosystem growth requires more than just price appreciation. 

While record-high prices certainly attract attention and capital, they must be accompanied by fundamental improvements in scalability, accessibility and user experience. The challenge for the Bitcoin ecosystem will be to harness this increasing momentum to build lasting infrastructure and develop practical applications that extend far beyond speculative trading. 

Advanced

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Will the Bitcoin Ecosystem Benefit From a Record High BTC Price?

Nov 25, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Trump's Planned Crypto Advisory Council

President-elect Donald Trump has pledged to establish a crypto-friendly administration, which includes forming a new advisory council for the cryptocurrency industry. Major companies like Ripple, Kraken and Circle are vying for positions on this council to influence U.S. digital asset policy.

The council is expected to be based within the White House, likely under the National Economic Council, and will coordinate policies related to cryptocurrencies, advise Congress and help create a national Bitcoin reserve. Industry leaders, including executives from Coinbase and Circle, have expressed interest in joining.

Trump’s transition team is also considering appointing a "crypto tsar" to lead the council. Former CFTC officials, such as Heath Tarbert and Brian Quintenz, are advising on crypto policy as the administration seeks to roll back Biden-era enforcement actions against crypto companies.

While excitement over a pro-crypto administration has contributed to Bitcoin's surge toward $100,000, some consumer groups have raised concerns about the industry shaping its own regulations. 

Weekly Crypto Highlight — Bitcoin Tests $100,000 as ETF Flows Intensify

U.S. Spot Bitcoin exchange-traded funds (ETFs) have achieved a significant milestone, accumulating over $30 billion in total net inflows since their inception in January 2024. This surge in investment reflects a growing interest in Bitcoin, as well as a favorable market environment.

The rise in net inflows and trading volume can be attributed to heightened bullish sentiment in the market, particularly following the re-election of former president Donald Trump. His return to the political forefront has sparked optimism among investors, contributing to increased confidence in cryptocurrency investments.

As a result of this influx of capital, the total net asset value of these Bitcoin ETFs has exceeded the $100 billion mark as of Wednesday, Nov 20, 2024. This achievement underscores the growing acceptance of cryptocurrencies in mainstream finance, and highlights the potential for continued growth in this sector. The strong performance of these funds signals a robust demand for Bitcoin, and could pave the way for further developments in cryptocurrency investment.

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Weekly Institutional Insights: Bitcoin Tests $100K as ETF Flows Intensify

Sui Name Service (SuiNS) enables blockchain users to register human-readable web3 names, ensuring secure, seamless transactions and a user-friendly on-chain identity.

Some people have no trouble remembering new cell phone numbers, and there are even a select few among us who wouldn't find it hard to memorize a 16-digit bank card number. However, very few people would choose to tackle the job of reliably recalling an alphanumeric blockchain address. Network addresses on 

 (ETH) are 42 characters long, while on the 

 (SUI) blockchain they span 66. These complex and length addresses are virtually impossible for most users to remember, and are among the least user-friendly features of 

 networks. Not only are long blockchain addresses distinctly user-unfriendly, but they also lead to many instances of wrongly executed transactions due to incorrectly input characters. 

Sui Name Service (NS), a solution on the Sui blockchain, has been specifically designed to tackle this problem. The service allows users to create human-readable and easy-to-remember web3 names linked to their underlying blockchain addresses. Using SuiNS, you can transact within web3 using your preferred username and, optionally, an avatar, rather than a long, complex blockchain address.

 (NS), or simply SuiNS, is a decentralized naming service that allows you to create and use a human-readable, user-friendly web3 handle to interact with the blockchain environment, instead of using a typical long and complicated network address. 

At the underlying level, your SuiNS name is linked to your blockchain address, but all the interaction and operations on the chain happen via your registered name.

SuiNS was first conceptualized and launched in 2022, inspired by the popular 

 (ENS). In many ways, SuiNS and ENS are similar, the obvious difference being that each one applies to its own respective blockchain environment. In May 2023, SuiNS was introduced on the Sui blockchain's newly launched mainnet. The service was developed and is supported by Mysten Labs, the development studio behind the Sui blockchain project. Since the beginning of the Sui blockchain's conceptualization, SuiNS has been among the core projects of the entire Sui ecosystem. As of late November 2024, SuiNS has managed to achieve the remarkable milestone of having registered nearly 330,000 names.

Using SuiNS, you can register your preferred username (as long as it's not been taken) for one year by paying a registration fee, currently charged in SUI coins. The name can be renewed at expiration for up to five years. All interactions with the blockchain environment through your wallet use your preferred username, rather than your blockchain address.

SuiNS names can be between 3 and 63 characters. Users can check the availability of their preferred handle and register it using the 

, where a lookup textbox is prominently displayed. Shorter names cost more than longer handles. As of the time of this writing (Nov 21, 2024), a three-character-long name costs 500 SUI ($1,785) and a four-character name will cost 100 SUI ($357), while names with five or more characters are priced at 20 SUI ($71.40).

A SuiNS name can only be registered for one year, but it can be renewed for up to four years (excluding the initial registration year). There's a 30-day grace period after the expiration of your SuiNS name, during which you may still renew it. If you don't renew during the grace period, your registered name will be up for grabs by anyone on the market. Optionally, you can buy an NFT avatar linked to your SuiNS name.

 (DApp) ecosystem on the Sui blockchain. Developers can use off-chain remote procedure calls (RPCs) to integrate the Sui service into their application environments. They can also take advantage of the native, on-chain SuiNS SDK to interact with the service.

Thanks to SuiNS, you can enjoy short, comprehensible names for your own address, as well as the addresses of the parties with whom you transact (if they also sign up for the service). No more forgettable string combinations that are hard to read and virtually impossible to remember!

However, a SuiNS name isn't just a tool of convenience. It also represents your decentralized identity on-chain. The identity is fully owned by you, the user, rather than by a centralized entity.

SuiNS minimizes the likelihood of lost assets due to sending funds to the wrong address: short, easy-to-remember names are way less prone to incorrectly executed transactions than standard blockchain addresses.

Security is also among the benefits of SuiNS. The service runs on the Sui chain, which prides itself on developing and enforcing high-grade security standards. Among these are 

, a framework that maintains a list of malicious websites and on-chain assets, thus protecting the Sui ecosystem from 

 launched by these known nefarious entities.

The SuiNS service launched its native token, NS, on Nov 14, 2024. Initially, NS is envisioned to support 

 processes on the platform, and will also be used for purchasing and trading SuiNS names. Currently, names are traded using SUI, the blockchain's native cryptocurrency. It's likely that NS will replace SUI in this capacity in the near future. The project team has also hinted that there could be additional uses for the NS token beyond governance and payment for SuiNS names. More announcements on this issue are likely to follow.

During the initial phase of the token's existence, governance will be its most prominent function. Holders of NS will be able to vote on important issues concerning the protocol's rules and future direction. One NS equals one vote, with more NS tokens giving you a greater say in the overall decision-making process. You can also increase your voting power by locking your NS tokens for from one to 12 months. For every additional month locked, you obtain 10% voting power. To encourage voting, 5% of the NS token's supply has been allocated for governance rewards. NS is a 

 token, with a total and maximum supply set at 500 million. The token's supply distribution shares are per the chart below.

NS is available on Bybit's Spot market as a swap pair with USDT (

). You can also take advantage of Bybit's campaign dedicated to the token to grab a share of the 

. Three campaign events for eligible users run through Nov 27, 2024, 8AM UTC:

Thanks to Sui Name Service, interacting on-chain has become easier and more user-friendly. However, easy-to-remember names aren't the only benefit: advantages also include lower likelihood of lost funds, better security and a completely decentralized, user-owned identity on-chain. So far, around 330,000 names have been registered, and with the impressive suite of benefits, expect this number to grow as we move with SuiNS into 2025.

Intermediate

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Sui Name Service (NS): Your On-Chain Identity Made Simple

Bybit Learn

Trading

Reversal candlestick patterns help traders make a more informed decision before extreme trends. Learn how it works.

Reversal candle patterns are an important tool within a trader’s toolbox. They’re useful in crypto trading because the market can make violent trend changes, causing large losses in a trader’s account.

There are several powerful reversal candle patterns that, once observed, can easily be utilized within a trading strategy. We’ll review reversal candle patterns, how they differ from retracements, and the most common ones you’ll see.

A reversal candle pattern is a formation of 

 arranged in such a way as to indicate the end of an existing trend in favor of an opposing one.

Candlestick patterns are a visual aid, helping traders see what the market sentiment is — and when that sentiment may be shifting. They’re easy to spot, allowing the trader to make swift decisions.

Bullish vs. Bearish Reversal Candles: Differences

Bullish reversals occur when the market is changing from a downtrend to an uptrend. On the other hand, bearish reversals take place when the market changes from an uptrend to a downtrend. 

There are two important distinguishing factors between bullish and bearish reversal patterns. 

The first factor is the shape of the pattern. The arrangement and sequence of the candles give rise to the pattern’s shape. Some patterns produce large candle bodies, while others produce large wicks, or 

The second distinguishing difference is the location of the pattern within a trend.

When a pattern appears in a downtrend, it indicates a potential rally, changing the trend from downward to upward. Conversely, when a possible reversal pattern forms in an uptrend, it provides a warning to traders that the price may correct or even crash. 

How Is Reversal Different from Retracement?

We’ve already established that a reversal is the changing of a trend. A retracement is the 

 reversal of a larger trend. It’s a shorter-term period of the movement against the larger trend, which is then followed by a return to the original trend.

Bullish reversal candlestick patterns are used to predict the reversal of the current downtrend in crypto. When a trader spots these candlestick patterns, it’s an alert that the crypto market may begin a rally. As we’ve seen over the past decade, crypto rallies can continue for a long time. Bullish reversal patterns are important to help traders catch the rallies as soon as possible.

 is a pattern that consists of three consecutive long-bodied candlesticks which open within the previous candle’s body, and close above the previous candle’s high. The wicks (or shadows) should be relatively small, which implies the market has rallied continuously through each candle’s duration with minimal setback.

In essence, the bulls take over the rally and close near the high of the candle for three sessions in a row. Any expansion on volume accompanying the three white soldiers lends additional strength to the signal.

This is a powerful bullish signal. The dragonfly doji suggests the lower-trading market has immediately rebounded, closing at the same price as the open.

The pattern gets its name because the second candle represents the sun coming up from below the horizon.

The three-line strike is a four-candlestick formation where the first three candles are bullish while the last one is bearish. Each of the three bullish candles progressively closes higher, followed by a final strike down.

The strike candle is bearish and closes below the opening of the first candle. This pattern is effective when prices have been trending higher. The correction on the last candle offers traders an opportunity to enter a dip.

 is a two-candlestick formation with a bearish first candle. The second candle punches a new low, but closes above the opening of the first one. The second candle also engulfs the body of the first candle, which is how this pattern gets its name.

This is a powerful formation because the market touches a new low, but only briefly, and rallies above the opening of the pattern.

The abandoned baby resembles the morning star patterm, but is unique because the second candle gaps below the lower wick of the first candle. Additionally, the third candle gaps above the second one.

The piercing line pattern involves two candlesticks. The first candle is bearish, with an average or larger-sized body. The second candle is bullish.

The key to this pattern is that the second candle punches a new low, and closes in the upper half of the body in the first candle. This behavior suggests the market has traded to a new low, but is beginning to rally.

 is a single candlestick formation, making it very easy to spot on crypto charts. The hammer contains a relatively small body, but leaves a long tail (wick) to the bottom.

The color of the hammer can be green or red, but the long wick to the downside hints at a rally forming. This occurs because the market has traded significantly lower, but only briefly, as prices rally back up to near the opening.

 consists of two candlesticks. The first candle is large and bearish, and the second is a small green candle. What makes this formation unique is that after the first bearish candle forms, the second candle will move higher, but with a small body.

At first, this formation may look like a consolidation, but in reality, it suggests the sentiment of the trend is shifting from significantly lower to higher.

Then, another trend lower forms the head and pushes below the left shoulder’s low. This trend lower is relieved by another rally that stalls near the price point of the first relief rally. These two points create the neckline.

The market then corrects lower one more time, creating the right shoulder, which holds above the price low of the head. 

Due to the length of time it takes to create this bottoming process, this pattern can lead to powerful rallies. 

Bearish reversal candlestick patterns are used to predict crypto market reversals when an uptrend is changing to a downtrend. When these candlestick patterns form, they suggest the market is about to correct, signaling traders to take action.

When a bearish reversal is at hand, traders may want to consider closing out long positions, possibly moving up their stop losses, or initiating some short positions.

Here are the top bearish reversal candlestick patterns.

 is a single candle pattern that appears at the end of an uptrend. This candle contains a small body with a long wick to the upside.

This formation is the result of prices rallying to new highs at the opening of the candle. Then, prices reverse, back to near where the candle opened. The long topside wick suggests there’s a strong batch of sellers as the market trades higher, but not for very long.

The bullish version of the dark cloud cover is the piercing line pattern (see above).

 is a three-candle pattern that points to a deeper correction. The first candle is bullish, with an average or larger-sized body. The second candle continues the rally but then stalls, leaving a relatively small-bodied pattern. The third candle falls back toward the opening of the first candle.

As this pattern requires three candles to form, it’s more conservative since more data is required to complete the formation. The bullish version of this pattern is the morning star.

The hanging man looks like a hammer, as its opening and closing prices remain close with a long downside wick. The distinguishing factor is the 

 of this pattern. When it appears at the end of an uptrend, then it’s considered a bearish pattern, suggesting lower prices may soon begin.

When the middle candle is forming, it typically gaps to a new high such that there’s no overlap between its lows and the previous candle’s high. This suggests a strong rally that hasn’t followed through to the upside. The third candle then retraces most of the first one.

The bearish engulfing candlestick formation consists of two candles. The first is a strong bullish candle in an already existing rally. The next candle starts to rally some more, pushing to a new high, but then reverses, closing below the opening of the first candle.

As a result, the body of the second candle engulfs the body of the first candle, giving the pattern its name. This formation is a common pattern that provides a big clue about a potential bearish reversal.

The pattern is completed when the third candle falls back to the open of the first candle, suggesting a deeper correction may be underway.

Each of the three candles has a minimal wick or tail, suggesting that the price has opened near the high and closed near the low. Such a pattern is typically a strong beginning to an even larger correction. 

What to Do When Reversal Candle Formations Appear

When a reversal candle formation is spotted, the trader needs to consider the strength of the signal. If the signal is strong, there are generally three options available.

First, if the trader is in a position following the direction of the old trend, they can exit all of their position.

Secondly, if the trader believes the reversal signal isn’t that strong, they may consider tightening the stop loss on their trade, or closing out a portion of their position to lock in profits.

Thirdly, if they’re flat in the market, they can use the signal to enter into a new position in the direction of the reversal. For example, if a bullish reversal pattern appears, then they can consider opening a new bullish position.

Following are some guidelines for traders planning to initiate a new position in the direction of a changing trend.

Most patterns are single, dual or three-candlestick patterns. Regardless of the number of candles, when the pattern completes, the trader can enter a position in the direction of the reversal on the opening of the next candle.

This allows the trader to enter into the position right away without the need for additional confirmation. 

 is a resting order to close the position when the market moves against you. When you see a bullish reversal, you’ll want to place a stop loss below the entire pattern’s low. Conversely, when you see a bearish reversal, place your stop loss above the high of the entire pattern.

What a Reversal Candle Pattern Is & How to Trade with It

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