Not in the strict sense.I am posting the original post from STda for your reference.
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NF is in downtrend, it takes a rally and makes rally top at A. Then the decline starts and the market goes down.The market gathers strength at the decline bottom and stages another rally and goes to B....now observe carefully.Bar marked B is a bullish candle and it closes in the wick or tail area of bar A....this means that the bulls tried their best to take the market up and break top A but they lost their power and could not push it up any further. This is virtual high and when low of bar B is cracked, it means the market is reversing its direction....so we sell short.
The same pattern happened at the bottom. Look at C and D and there reversal was indicated. This gives a very high RR trade and one can catch the reversal at almost high/low point.
Look at A,A' and B and see how at a resistance zone a reversal is indicated.B is closing in the wick/tail of A and A' and triggering virtual high reversal once low of B is cracked.