A question about candlestick pattern

Discussion in 'Technical Analysis' started by ArnavDeshmukh, May 13, 2023.

  1. I was reading and watching tutorials on YouTube about candlestick patterns and wanted to ask, "Do candlestick patterns really show the right direction?
    murray t turtle likes this.
  2. Sekiyo


    Yes it’s a reliable signal.

    Of course you won’t always make money but if you stick to the candlestick then you should make money on average.

    Also it’s stupid to buy each and every signal as the market is usually in balance (No edge). Only imbalances (Outliers, tail events) are worth trading (Long Momentum / Short Capitulations) IMHO.

    Leave the middle (1 or 2 Sigma) of the curve for the market makers.

    Out of 100 bars you should have 5 or 10 signal bars or more but don’t take 10 trades for every bar !

    Well I don’t want to tell you what to do.
    But I believe opportunities are the exception.

    I don’t care about patterns myself.

    All I care about is if the market’s inside a range (UpDownUpDown) or in expansion (Breakout).

    If it’s inside range it’s better to fade extremes until it breaks. Once it’s going it’s better to go with the move.

    The problem with “patterns” is everyone is drawing them differently therefore there is no crystal clear psychological levels where everyone’s going to buy or sell.

    If it’s crystal clear then Why not but I prefer crystal clear horizontal lines.

    I don’t need more neither therefore I’ll leave it to the failed artist - failed traders aka chartist.

    Maybe it’s worth knowing if we’re making a higher/ lower high / low. That’s it.
    Last edited: May 13, 2023
  3. TheDawn


    Yes if used in conjunction with other technical analysis techniques/systems and within the context of the fundamental factors otherwise it can be misleading.
    Last edited: May 13, 2023
  4. deaddog


    They tell you what happened in that time frame.

    It's up to you to guess what's going to happen next.
    ArnavDeshmukh and Darc like this.
  5. DeMurph


    Yes they show the right direction but please do not over trade on the directions because sometimes market is not stable and you will lose all your money
  6. I appreciate your thoughts on my topic.
    Sekiyo likes this.
  7. %%
    IT'S a reliable signal;
    with enough of them.
    But i dont use them @ all in FOREX or metal markets; + i dont trade Forex anyways. Seldom is a 5 minute candlechart useful, even though 200days worth of them can clue you in maybe
    And i'm looking @ 5 days of 5 minute candlecharts on SPY , pretty much useless for trends; unless someone waits on a 200 day movingaverage , like a 200dma weighted or related average....
    ArnavDeshmukh likes this.
  8. Only thing I know about candles is not to burn them at both ends.
  9. DeMurph


    It was very funny but i don't think so here is for any kind of posting i think here is just only for traders and posts about trading
    #10     May 16, 2023
    ArnavDeshmukh likes this.