you need to consider the activities of bots and hft in the intraday time space...do they also operate in the non intraday time space?
Impossible to answer because you're not revealing any information about what you're trading and what patterns you're talking about. My point, learn how to backtest (do it manually if you have to) whatever patterns you're talking about on the trading instruments you plan to trade...the results you get will answer your question instead of you asking anonymous people that most likely are not trading what you trade and most likely are not using the same patterns as you're using. Here's a sports analogy. Pretend you're a runner and you walk up to other runners without revealing you do 100 meter sprints. You then ask what type of shoes you guys practice in and what type of exercise you do. Some of them reply with answers without revealing they are marathon runners and others reply without revealing they are high jumpers and others reply without revealing they doing the steeple chase... Their answers will not be much help because your question was too vague (no info about what your doing) and the replies are too vague just as well. This is a very common problem at trading forums. I do understand you're new to trading but its your responsibility to find these types of answers on your own. More importantly, your answers will be very specific to what you're trading and what you're going to use for trading in comparison to the answers by anonymous folks. Yet, please don't be misunderstood...its good to ask questions but the problem is that you're questions are vague and you're not revealing any info about what you want to do beyond saying I want to trade. Now a more specific example instead of the sports example just in case you still don't understand...pretend you found a pattern called XYZ and you're trading German stocks without revealing you're interested in pattern XYZ and without revealing you're trading German stocks. You then go to a trading forum and ask anonymous people if patterns "work" and someone that answers you is trading Forex without saying he/she trades Forex, another person that answers you is trading Crude Oil CL futures without saying he/she trades Oil futures and that he/she is using pattern called FGH and another person shows up and says they don't work without revealing what pattern he/she is talking about and what was it tested on, when was it tested and what was the trade management rules... The above are all useless info if not revealed. Simply, these anonymous answers will only further confuse you, encourage you to keep traveling down the wrong path. Backtest this stuff on your own because your results (answers) will give you more valuable information in comparison to you not revealing what you're doing and those replying to you not revealing what they're doing due to the nature of how vague you're making your questions. Japanese Candlestick patterns are some of the most easily backtested patterns. Anyone can do it by themselves with almost no backtesting skills. What I mean is that you can manually test these types of patterns via whatever specific candlestick pattern you're interested in and on whatever trading instrument you're trading. Just remember this...there's others out there that has already tested this stuff and published online articles about there results that can easily be looked up on Google. Most say they don't work, some say they do work. The contradiction you'll see is that ALL of them are testing different candlestick patterns, on different trading instruments and via different trade management rules. Simply, you will get "different results" on different trading instruments via different trade management rules and different risk management rules. BackTest this stuff yourself and do not rely on getting your answers from those not even trading what your trading and not even using the same patterns. Your test results will help you to form the beginning of a trade strategy that can be used in a trading plan (e.g. risk management, proper capitalization, daily preparation routine, discipline, proper trading environment and so on) that you should also be developing. Good luck...you have many months of work (research and backtesting) to do before putting on another trade. Some of the best traders in the world spent many months or years testing, learning or interning before putting on their very first trade. Don't fool yourself into thinking you can skip that process and do better or equal.
Patterns usually work on all time frames because the market is a fractal. However, due to trading activities, news, etc, the lower time frames tend to be more noisy and choppy compared to higher time frames.
Oh wow i never knew that. I mainly trade on the korean stock market ever since i moved out here. And i trade in stocks in companies, nothing in crude or commodities. Actually ive only traded 3 ot 4 times and lost on every single one of them. Thats when i stopped and started to read more and ask questions. I really wanted to trade intraday or swing trading cause i dont have the patience to sit around for months waiting for a stock to go up. But the reason why i wasnt more specific was that i had heard from someone that patterns and trends are universal and that they appear on all types of tradings. So all i had to do was to identify them go on the internet, see how to trade them, and then see their success rate. I also heard from other people that this approach was rather juvenile and immature and that everything needs an incredible amount of preparations. AND THEN i also heard that trading isnt hard but rather nerve racking. Not to put too much effort into thought and preparations. But rather see a trend and pattern learn how to trade them and then be patient. So i was really confused as to what was what.
%%%%%%%%%%%%%%%%%%%%%%%% Good question cashc; NO, patterns don't work you have to do the work. Strange pattern- I hate 5 minute charts, NOT enough trend per commission; I remember Don Bright Daytrading CO, he hated charts especially 5 minute charts..........................................................................................................Wisdom is profitable to direct
You've started a large number of threads asking such questions. I and a few others have tried in vain to tell you that doing this is going to get you nowhere, and that the only road is to devote at least a year or two to the study of TA. Once you have at least a basic knowledge of TA, people here will be happy and able to help you. But first you must help yourself. I posted a chart yesterday in one of your threads that had a number of TA basics. I was hoping that it would open your eyes as to how little you now know. You are going to learn nothing by posting charts and asking 'What's this?', 'What's that?'. Your wasting your time and that of those who answer. You will not get a course on TA here. Instead you might want to ask how others learned TA, what books they read and benefited from etc. and then set out on a course of study for yourself as we once did. But, of course, if you have no serious interest in studying, that's that.
Its simple, whatever patterns you're talking about...backtest them from entry to exit and I'm sure you already know what specific patterns you're interested about. Get some results so that you can then continue learning and making adjustments. That's the best way to not be confused. Pick a few things...only a few things and backtest. Patterns or trades signals are just one chapter in a book. There's other chapters (e.g discipline/psychology, risk management, proper trading instruments and so on) in the book are equally as important and sometimes more important than patterns/trade signals depending upon what you're trading and your trade strategy. Too many traders start trading without knowledge of those other chapters or underestimating their importance or too many traders start trading without doing any backtesting...its during this backtesting process that you really start to learn and putting together a trading plan that must contain those other chapters in the book. Further, too many traders come to this forum and clearly should not be trading and the only advice they get involves "encouraging them to trade" via folks talking about how they themselves trade instead of saying "stop". Now you've stopped...start backtesting a few things and then share your results and then ask more questions and then continue backtesting.