You are exactly right in the fact DFD is a trend reversal candle...

You are exactly right in the fact DFD is a trend reversal candle and the following candle confirms the change of trend...you need other signals though like a really noticeable trend to slow down in the first instance...if the preceding trend is not overly strong, unless there is positive divergence and a strong increase in volume it's not going to reverse with strength. I think everyone can accept that nothing but a catalyst will get TNR moving up and I will be looking for a higher high-higher low on the lower time frames and MACD cross to obtain another quick catalyst trade entry. I think we can all agree that we are at a very strong support level and with little chance of the SP re-rating to a lower level. I don't care what BS is spread on here by some if a dive in XAU couldn't do it, and the ATR has been steady for nearly 2 months bulls and bears are at a standstill it's simply not going to happen.

A perfect example of what I believe you should be looking for preceding and following a DFD is attached from TNR 7th September.

Cheers...G76 DYOR