Why Trade Location Matters More Than an Attractive Candle Pattern

A beautiful engulfing candle or pin bar can look convincing, but location determines how meaningful the pattern may be.

Compare these two situations:

- A bullish engulfing candle in the middle of a random range.

- A bullish engulfing candle after a liquidity sweep at an important support zone.

The second situation may offer stronger context, although confirmation is still required.

Remember: Never evaluate a candlestick pattern without considering where it forms.

Do you prioritize candle patterns or their location?