• Reversal hooks are short-term candlestick patterns that predict the direction of reversal trends.
  • When a candle has a higher low and a lower high than the previous session’s candle, this is a hook reversal.
  • The hook reversal differs from the engulfing pattern in that the difference in the body size of the first and second bars can be relatively small.
  • Hook reversal patterns are popular among active traders as they are fairly common and relatively easy to spot.