Hi guys, Looking for a reliable candlestick pattern quick ref. guide. Looked at a few and each says something not similar to other. Could you please let me know a reliable guide which I can put on a desk a look up for quick check on the guide. Thank you
Unfortunately, there is no such useful reference guide. Japanese (and perhaps bookseller) like to boast about candlesticks. I trade mainly using price action, pattern ...
This not exactly in chart form, perhaps you can use this info and create your own... https://school.stockcharts.com/doku.php?id=chart_analysis:introduction_to_candlesticks
Not sure why you put the word "reliable" in your title when you're only looking for a Definitions / Explanation of each Japanese Candlestick pattern. Keep those reference guides you have even if they're different because for each pattern...there are sub-groups for each pattern. Therefore, the patterns you have in one guide should not be the "exact same" in another guide unless its by the same author. A typical Japanese Candlestick pattern...each has a minimum about 5 sub-groups. Also, you mention quick reference...that implies you need to save your own charts of your favourite Japanese Candlestick patterns with objective rules written in your own words in a spreadsheet or folder...charts of markets that you trade. For example, if you're trading Heating Oil Futures...you want your "quick reference" that's created by you of Japanese Candlestick Patterns with charts of the patterns in Heating Oil Futures and not Gold GC Futures. How do you decided which are the best patterns for you to create your own "Quick Reference Guide" ? You need to backtest as many patterns as possible and then use only the patterns that have the best results via the hypothetical example of Heating Oil Futures. I recommend to let your backtest and simulator results tell you which patterns to concentrate your learning / application efforts upon. It's one of the biggest problems with traders via the fact they're learning a pattern via a market they do not even trade or they're wasting their time & energy via using something they did not backtest nor traded via a simulator...that's how you use that word "Reliable" in your subject title. wrbtrader
A few candlestick studies were done here and there. It seems that the most "reliable" are: 1: Bullish and bearish engulfing patterns 2: Shooting stars and hammers. 3: 3 white soldiers and 3 black crows. When combined with support and resistance levels these 3 simple candlesticks patterns can deliver powerful reversal signals...
Candle sticks don't understand time so there randomly formed, M1 chart if you could alter the start time by 20seconds they'd all look different proving pointless.
Oh yeah? Try and change the look of a three white soldiers pattern on a M1 chart just by altering the time frame by 20 second, for instance. And by the way, 1 min time frames are almost meaningless as far as candlesticks are concerned. At that level it's almost just noise from virtually random buy/sell orders. The most powerful candlestick signals come from the 4h charts (and/or higher), for some reason these time frames seem to be controlling the true direction of the market.
I'm trying hard to move to M5 tried and failed a few times from M1, this weeks project, agreeing on the noise issue. I don't see anything from looking at 4H charts at all, D1 charts I could trade that's where i call, the Sell offs like last Thursdays, not got the account for huge SL's mind so don't try. It's the over all momentum that's why they work.
Respect, I tried the 1 min without any noticeable success, this time frame you are using is just too "weird" for me, it truly gives me the creeps! For day-trading nothing beats the 5, 10 and 15 min time frames.