if I can make a suggesttion for anybody who is new to charting and risk reward, the steve nison tapes STRATEGIES FOR PROFITING WITH JAPANESE CANDLESTICK CHARTS SECRETS TO BECOMING A SAMURAI TRADER are well worth the money, they teach you when to trade candles and when to avoid a candle signal there not the only thing to learn from but they do help
Not too mention the time it takes to analyze "the meaning" of the candle formation. By the time you think you've got it, you've missed the "real" trade entry. Osorico
I have Nison's Japanese Candlesticks book, "the Candlestick Course." Would you recommend those books/courses in addition?
I'll repeat my message to you from the prior thread. Red (dark) Hammer lines are not pattern signals. If you like them that much at least wait for a confirmation signal and all the charts you've posted at ET about red hammer lines do not have confirmation signals. In addition, take a closer look at your candlestick chart... Look at those 1min intervals where the Open = Close = High = Low (no shadows). When you see that, your chart interval is to low and you need to increase your chart interval until you no longer see that stuff because that stuff produces too much price noise for proper Japanese Candlestick analysis. Hopefully you didn't put any real money on those unreliable Red (dark) Hammer Lines. You keep at it this way (not applying it correctly)... Soon you'll join that group of traders that announce at ET the following... Japanese Candlesticks don't work. Those are good books for a basic understanding of the definitions of Japanese Candlesticks. They do not provide any trade management information. Simply, two traders reading the same book will apply different trade management of Japanese Candlesticks. I will also recommend to you to read my Trading Hammers (revisited) thread here at ET because there's some trade managment info that goes well with candlestick analysis. In addition, you will learn about those infamous three consecutive declining red (dark) intervals that appear before any Hammer Lines. Note: Your RMBS chart has three consecutive declining red intervals before the appearance of your first Red Hammer Line (avoid these types of price action). Mark (a.k.a. NihabaAshi) Japanese Candlestick term
this a 5day 1 minute chart same as the one above, you just have to trade faster and know the targets are smaller if you want bigger gains and are not a scalper then the 1 minute might not be for you, but you can use it along with a longer term chart for entries and exits maybe you use a 10minute or 15 minute for trend and use the 1 or 3 minute for enties and exits
I don't know I don't have the book but pictures are nice and he explains risk reward and other stuff, you have to watch it a few times and then even after that you can watch them again to see what you missed, he sells them in a package and its worth cash in my opinion
Not true once you know what you are doing. It can be intimidating at first, but it becomes 2nd hand once done consistently. In your opinion, that's fine. They work just fine in intraday analysis when used with a set of polished rules and setups. Just b/c they don't work for you does not mean they do not work intraday.
It does not matter. You have not explained your trade criteria as Mark and I suggested in the other thread. Just finding a shape that resembles something you saw on a website or book is just the beginning Iron. I suggest you re-read that other thread b/c since then, you obviously have not developed any trading plans/criteria whatsoever.