Discussion in 'Technical Analysis' started by bat1, Feb 10, 2008.
I use them as a tool however some like just lines
do candlesticks work for you?
candles are worth about $0.5, which is what it costs to buy a candle
Has anyone ever done a backtest study of Candlesticks
Thats all I use with no other indicators on my charts, its different for everyone though. Many people have there own system they are comfortable with. Its all bout what works for you the best.
There are alot of other factors that can be included too. It hard to explain with out going into a bunch of yammering.
You might want to do a search of this trader.
He has a number of posts on this.
Thanks , I did some searching and found this link.
There was an article in TASC once about that. They found one pattern that, by itself, had an edge. I don't know at all, probably the rest of the patterns have to be viewed in some context to be useful...
Any indicator or setup you will find if you changr the time frame . You could have a candle set up that you are looking for and if you keep changing the time from to longer period you will find it . I use to follow elliott wave and all these guru would find patterns on different time frames . I find candles a lagging indicator . I dont follow too much but doesnt it take three candles to confirm a reversal . I follow fibs and trendline and a watered down elliott wave .
If you use them in relation to understanding price action, they work. If you are simply buying because there is a hammer, you will get your head handed to you.
There is a good blog that is no longer updated but the blogger used candlestick charts in conjunction with many other strategies. You might check it out as there are a few years of charts:
Candlesticks give much more information about behaviour of the market than a line on the closes, but they are just a tool and there is no magic tool in the TA box that will do everything perfectly. I mean, a screw driver is pretty good at tightening screws, but very bad for writing. You have to read Steve Nison to be a serious trader but that just equips you to learn.
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