Why did I profit the first time but get stopped out the second time after two consecutive H2 patterns? Price Action Analysis You might have counted the candlesticks correctly, but chosen the wrong entry point. In an uptrend on the daily chart, a 4H pullback to near support, followed by an unsuccessful first upward attempt and then an H2 pattern: If the selling pressure gradually weakens and the second bullish signal candlestick closes at a high level, a break above that high is necessary for a trend-following entry. An H2 pattern doesn't necessarily require two complete lows, nor does its appearance guarantee a rise. In the middle of a daily range, the same 4H H2 pattern is often surrounded by overlapping candlesticks: neither bulls nor bears have an advantage, and a breakout is likely to be followed by a quick pullback. In this case, it's better to wait for the range edge or a clear breakout rather than trying to find an opportunity in the middle. Place the stop-loss below the structural low that invalidated the entry logic. Target the previous high or range resistance first. The H2 is a trigger structure; the context and position determine whether it's worth trading. Price Action Analysis, PriceAction Trading, AlBrooks, H2 Candlestick Analysis, Trend Trading, Risk Management