Advantages: Easy to recognise and interpretTends to be a relatively accurate market predictorCan be used with other technical analysis toolsCan be combined with other technical indicators Disadvantages: The reversal in market trends is not guaranteedMay require confirmation of direction before price action is taken.It may not be a very accurate indicator if previous market behaviour isn’t a consistently followed upward trendA large bearish candlestick may push the stop-loss level higher leaving the trader with a larger stop-loss.