Candle stick charts

Discussion in 'Risk Management' started by EpiphanyTrading, Mar 7, 2010.

  1. EpiphanyTrading

    EpiphanyTrading ET Sponsor

    In May 2009, Epiphany Trading hosted a trader conference with Steve Nison the alleged guru of candle stick charts. I wasn't impressed, maybe a notch below.

    Are there any other notable candle stick technicians? How well do candle sticks actually work?
  2. Lethn



    I use candlestick charts but I don't think they really make that much of a difference, just changes the graphics.

    I think this 'guru' is probably full of shit.
  3. I've written this on ET before and don't know if you'll find it interesting or not but even though almost all charts that are printed here in Japan use candlesticks, very few Japanese do candlestick analysis. You can go to a bookstore and find a zillion TA books on indicators and the like but you would have a hard time finding even one on candlestick analysis. Maybe the ones who invented them know something the west hasn't discovered yet!
  4. candlestick do work

    but you dont have to think they predict

    the right mindset is the REVERSED mindset

    key reversals are commonly seen at reversal of market

    not key reversal lead to reversal of market

    this is the edge candlestick provide

  5. You and I had this conversation before prior to you hosting a trader conference with Steve Nison...seems like you've forgotten.

    First, there's a difference between someone using candlestick charts versus someone using Japanese Candlestick Pattern Analysis. It's very important you understand that difference prior to asking questions. Simply, most traders that use candlestick charts are not using Japanese Candlestick Pattern Analysis. The same price action you see on candlestick charts you'll see on bar charts.

    Overall Japanese Candlestick Pattern Analysis is not reliable nor should you use them all by themselves. However, there are easy ways to make them reliable. Therefore, they are reliable is you have an understanding of the price dynamics they are occuring within.

    Without that understanding of the price's not reliable nor is anything else. I've been using them profitably for a very long time. Yet, it's not my primary method and I don't use them alone. There are more important things working for me when I do use Japanese Candlestick Pattern Analysis such as market experience, discipline, money management, position size management et cetera.

    P.S. Stay away from the coded crap.

  6. EpiphanyTrading

    EpiphanyTrading ET Sponsor


    I do recall the thread. I was considering searching, re reading it, and then create more content for this as it goes along. But, wanted to start a fresh thread with no riff raff.

    As of now, I do have 5 minute candle sticks linked to my primary Level II. That being said I am not banking on anything that they tell me other than experimenting and trying to prove or disprove the probability.

    Brendan P. Byrne
  7. I recommend that when you create more content after your experience with Steve Nison is to begin with one or two candlestick patterns only within the frame work of price dynamics (understanding the price action prior to the appearance of any pattern signals). I say this because most education stuff out there on Japanese Candlestick Patterns try to cover all patterns and that's a huge mistake.

  8. EpiphanyTrading

    EpiphanyTrading ET Sponsor


    I would like to know if you would be interested in contributing your knowledge to one of our weekly conference calls? We can arrange a date at which you can start the dialogue. call brendanbyrne&pagenumber=4
  9. These prefessors think candlestics do not work:

    Paper on candlesticks

    Candlesticks are a just a tiny subset of a larger class of patterns some call price patterns or micro-patterns or even price action patterns. Michael Harris has done a lot of work on the mathematics and classification of these patterns in his books. About 10 years ago I attended one of his talks in a Tradestaion conference and I realized that candlesticks are just another name for specific OHLC patterns.
  10. They are hopeless when used by someone who read a book, (like a professor) but brilliant when used by someone who figured out how they work.

    Like just about anything in a book, the very basics might be there but you'll not buy a course on hedge fund candlestick analysis.

    At the highest level nothing discloses as much information as a candlestick and nothing is as fast to read. Patterns are best for showing where slower traders will follow your entry. If you trade candlestick patterns you're book reading.

    They perform exactly the same no matter how big or small the time frame.

    Steve Nison is not a trader. It's funny having someone who can't trade teach traders how to trade. That's why he spends so much time talking patterns, but they look pretty and it fills the time :)
    #10     Mar 7, 2010