Candlestick continuations

Discussion in 'Technical Analysis' started by judge, Nov 19, 2003.

  1. judge


    Hi all!
    I have been enjoying reading through the posts here. There is some great stuff.
    I have a question re:candlestik continuation patterns. Does any one have any that they have used successfully?
    I am particularly interested in these on a daily chart, ie, where one candle is one day.

    Thanks in advance
  2. Boomer


    i find that bullish/bearish engulfing patters can be successful during the day. they oftentimes reverse for nice move.
  3. judge


    Thanks for the reply.

    I had always seen ungulfing patterns more as reversal rather than continuation patterns though, and am also more interested in daily rather than intraday ones.

    Has anyone used any continuation (of the trend) candlestick patterns with any success?
  4. See attached - and vice versa for bearish. One of my favorites - note, sometimes there are only two small bodies before the continuation.
  5. bobcathy1

    bobcathy1 Guest

    My favorite is what I would call a stair step pattern where the candle bodies do not overlap at all. The longer the candles are the better.
    And of course if there is a gap in a trend....I jump in with both feet and am usually rewarded. Yesterday on YM there was a good one. Those only happen on the 30 tick or less charts.
  6. Via daily chart continuation patterns...


    What do you trade?

    What candlestick books do you own?

    What candlestick continuation patterns are you currently using?

    Please post some chart examples of your experience with continuation candlestick patterns via daily chart analysis. goes...

    There are some traders here at EliteTrader that uses daily candlestick patterns to confirm their position size management for their day trades while trading the Eminis via intraday candlestick patterns.

    More specifically...their very good with continuation candlestick patterns via daily chart analysis...

    (These guys/gal aren't after a few points if you know what I mean)

    helps them decide if they will hold a profitable position overnight or if they should day trade as usual and wait for a breakout or breakdown above particular types of daily chart continuation patterns...

    Note: All the basic continuation patterns are listed in your usual Japanese Candlestick books...

    Further...those successful traders that hold Eminis overnight using daily continuation patterns with intraday analysis...

    Aren't going to share unless they think you are putting in the work to learn about candlesticks (hint).

    How do I know the above as fact...I've been here for a few years and those traders rarely post here...

    when they's not about candlesticks.

    Basically...this is how they and I trade via using daily continuation candlestick patterns...

    (They have their own daily chart continuation patterns and I use only one particular daily chart continuation pattern)

    What the market does on the intraday the following day after the appearence of a daily chart continuation pattern will determine which way to place the initial trade position...

    an initial trade position based on intraday reversal patterns only...

    Long or Short when opening a new position that's designed for an overnight hold of one to many days.

    Also, if they held an overnight profitable position based on daily candlestick analysis...the following trading day...

    they'll either be adding to a profitable position via intraday signals or exiting parts of a profitable position if things don't look so hot on the intraday (reducing their risk exposure).

    Which ones work the best or is more successful isn't what you really want to know because the success is based on that particular traders trade management (stuff that happens after entry)...

    What you want to know is which daily continuation pattern tends to set up for a strong price move the following day...allowing a comfortable breathing room...Long or Short...

    increasing the odds of catching a big price move regardless for just that intraday or for holding many trading days.

    Hint: Study your continuation patterns on the daily chart that have a wide range body (Close > Open...not High > Low) in comparison to the prior 3 daily candlestick bodies...

    Next...look for a particular type of candlestick in the following daily candlestick (its a repetitive pattern)

    stay in the position until the next same pattern appears or until the next reversal candlestick pattern appears.

    Tip: It's not discussed in any books as a continuation pattern.

    Why just a hint via the above instead of providing all the dirty details (chart examples and criterias for trade management)...

    Some traders want to only freely share with those that truly have an interest..

    sometimes that interest can only be measured by what they share themselves (you) or how they (you) respond in prior conversations on similar topics.

    You have only a few posts here at ET...your going to have to show more interest (instead of questions) to smoke out some profitable answers from some of the serious candlestick traders here at ET...

    most of which only communicate about daily and intraday candlesticks via private message or email.

    I know the above for fact because I communicate with some and they aren't active in posting at EliteTrader.

    If your not interested...take a peek at (they have a free 30 day trial and I have no association with them)

    They mix well together daily candlestick analysis with intraday candlestick analysis...

    I used it a long time ago to help out some stock traders and to see what was all about.

    I liked the website.

    Good luck with the homework via my hint...its a gem.

    P.S. Candlestick discussion here at ET aren't that popular.

    Interest usually doesn't increase until charts are being posted and when traders are sharing their candlestick experiences.

  7. judge


    I trade Australain equities and equity options.

    None I have read one (can't remember the name.)
    Just reversal patterns. Doji stars engulfing , piercing lines.
    Is there a test forum here where I can fine tune my posting skills?

    p.s. thanks for your reply...I will go over it.
  8. judge


    Here is a test of our index with a formation I call the "toolbox"
    (two hammers) we got agood confirmation bit has stalled today.

    hmm...file size is too big

    Lets try again...
  9. HI Judge,

    I'm not sure what type of file your trying to attach...

    I use a free program called Xnview to capture my images from either the entire monitor(s) or just the active window.

    EliteTrader only allows the following type of attachments:

    gif jpg png doc xls pag txt pdf more than 102400 bytes.

    I always use .gif or .png (less problems and no blurriness).

    .Bmp or .jpg seems to cause the most problems for those I've seen try to post attachments via such.