Tell me some candlestick patterns and their forecasts

Discussion in 'Forex' started by Alexis_0, Dec 18, 2023.

  1. Alexis_0

    Alexis_0

    It is seen that expert traders can predict the price of the market by looking at the candlesticks. How they do so?
     
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  2. maxinger

    maxinger

    The EXPERT TRADER only told you 10% of his candlesticks' secret.
    He still has 90% of his secret not disclosed to you.

    Candlesticks' book publisher must be very pleased with such a news.
     
    Last edited: Dec 18, 2023
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  3. kroxobor

    kroxobor

    In my personal experience, I found the Hammer and Engulfing patterns particularly useful for spotting potential reversals in the forex market. Witnessing a Hammer forming after a downtrend often hinted at a possible bullish reversal, prompting me to consider long positions. Similarly, Bearish Engulfing patterns in an uptrend alerted me to potential bearish reversals, leading me to assess short opportunities.
     
  4. You will need lots of context to make them work. They generate many false signals. They are good to watch. I like the shooting star and the rising three methods but without some confirmation the failure rate is high.
     
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  5. TrAndy2022

    TrAndy2022

    This is a lie, or those traders have been just lucky for some time. There is no profit to be made going forward from any candlestick analysis. I tested them all for an extended period so I know exactly from what I am speaking. You can skip that time, because it would be only a waste.
     
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  6. I agree with TrAndy; using Candlestick patterns to trade is a waste of time and there is no site that uses them that has shown trades in real time, posted any substantial profits or authenticated their performance. While there are books written on Candlestick patterns there's no effective training presented. As he says you can skip it because it's a waste.
     
  7. Of course context is king.
     
  8. tomorton

    tomorton

    Be prepared to be underwhelmed if using candlestick patterns in isolation. A win rate of 50-60% from a good pattern is going to be the norm.

    There are things that can be done to tilt the odds a little in your favour (and these are not unique to candlestick patterns) -
    • be strict with pattern identification rules
    • check higher time-frames: prefer trades which align with the longer-term price action
    • avoid ambitious r:r ratios: 1:3 is rarely going to occur
    • instead, consider adding to winning positions
     
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  9. tomorton

    tomorton

    I'm happy to be trialling a couple of less well known candlestick patterns -
    outside key reversals
    Smash Days - see Larry Williams

    Both on forex and the S&P index: both give entry level and a stop-loss level which is just a little over a day's range away.
     
  10. There's also astrology
     
    #10     Dec 18, 2023
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