Hi guys, I've been looking at combining candlesticks with moving average pullback and breakout systems. The idea being that when the same move is confirmed by both candlesticks and the moving averages to then take the position. I must admit though, I'm quite new to candles and really should have investigated these a good deal more by now. Having played around today I notice that changing the timescale of charts tends to give different types of patterns (by that I mean that if I'm using a 700 tic chart at the moment I see a lot of engulfing patterns) but when I switch to a 60 minute chart I see a lot of tweezers and doji stars. Obviously they've got different data but I'm just surprised by some patterns seem to dominate certain timescales. I'm just wondering what patterns work for you. Do you have different charts with different timescales and look for formation different periods? Do you use candles in conjuction with other indicators and what combination have you found works the best? Neil.
The only useful candle that I use are hammer/shooting star/long wick types. Many people call this a poke or a reject bar. This confirms perceived resistance areas and shows at least an initial failure. I use it mostly as confirmation, but never will trade it directly.
most traders i know prefer candlesticks... however there are a few that i know that have been successful with bars as well...