Discussion in 'Technical Analysis' started by aphexcoil, Sep 4, 2002.
Who in here uses Candlestick patterns when trading -- and on what time frames?
me.. daily and 15 min charts.
Me, daily and 10 min charts (UK stocks, STOXX and Dow)
me...daily, 5, 15, 30, 60.
me too ... 1, 5 ,15 ,60
Candle patterns are not reliable for short-term trading timeframes. I do like the visual info versus a hi/lo/close bar, however.
I use them in all my trades.
Mostly a swing trader. So I primarily use the daily chart, confirmed by the weekly.
Then the 5-minute sticks to enter.
I've used them for so long, bars or lines just look foreign.
A friend of mine does well trading Rice Futures. Of course he uses bar charts.
I was surprised by Bones comment that candles are not good for short term trading. If I see a hanging man or shooting star after a rally in a 5 minute chart, I've found it to be a good indicator of a reversal. To be a little safer, then waiting for a stochastics and/or RSI high in a 1 minute chart, makes a short entry that much less risky.
Obviously a 5 minute candle pattern shouldn't be the basis for a multi-day long trade, but if the candle timeframe matches your trading duration timeframe, I've found intra-day candles to be useful.
Anyone else agree or disagree?
I totally agree. Look at any chart -- as the high is approached, you get a lot of spikes towards the sky and as a low is approached, you get a lot of long wick shadows. By themselves, they don't tell the whole story, but like you said, if you have another indication that the market is reversing, you increase your EDGE.
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