Why do candlestick patterns work? Learn to trade price action

I used to read them stupid candles.... Even had a candle recognition expert A....... I had another thingy that will show 1h candles on 15min, etc. Then put 4H to draw on it.........i was such idiot.
Feel welcome to use my suggestions above..... I charge 20% of your profits and 0% your loss

Good summation. But to be fair, these patterns work 50% of the time

They do work, if you do it right!

Look at the whole structure the candles make.... Not just the patterns or 2 or 3 candles.

They do work, but have to be at the right spot in the structure

example.. a bearish engulf after a quick spike up... at previous support/resistance on a higher time frame.

Yeah Crow, but in the long run everything is relative .....

Back to Topic: I am surprised that the author decided only to mention those continuation patterns (Hint: I needed not read further after those lines).

I don't understand the negativity of comments on candlesticks here. Could it be that some of you misinterpret the patterns? I see some call it different names ... pin bar; Kangaroo tails etc. for the Hammer. (The Nippon rice traders know what it means when the depth of sea has been tested!!).

What about the Doji, Harami, Dark Cloud Cover, piercing patterns? The morning- and evening stars? All these are reversal patterns if you know how to read them correctly. So, I strongly disagree with the view that Candlesticks is not profitable! If you are able to combine both Eastern and Western patterns, you will benefit enormously.

I like Candlesticks as the psychology of the market is easily seen through them. And, they are faster in telling you what is to come!

Absolutely. candlestick work best with volume. there are strong candlestick that can give you some reasonable profit. however it has to be combined with other indicator for maximum benefit. Not all candlestick pattern should be traded if you don't want to lose your capital.

"The lady doth protest too much, methinks"

Reading all of these comments and opinions gave me a good laugh

So, guest, if you are making so much money trading however you trade, you should share. LOL
You should log in as well, instead of just making negative comments about what is real.
I used to trade based on fundamentals and kept losing trades. Now, trading price action, I get results.
When you respond with your negativity, it won't matter to me, because I am making good trades now.

No one, absolutely no one can tell what will happen in future my friend. No one can second guess the market. That is why we are trading probabilities, not possibilities!!!

We expect something to happen and when it does not we get emotional.

The Winning Investment Habits of Warren Buffett & George Soros Paperback – August 22, 2006
by Mark Tier (Author)

Read this book, learn from the dinosaurs and realize how wrong is your conclusion, mate.
Educate yourself, don't make rush conclusions before you gather more info and intel on what are you dealing here

Hi, friend. I don't think anyone here cares what you actually do in your every day life.
And one friendly advice, if you are going to post in public forum, try to contribute and post something helpful, inspirational or useful to the others.
Happy trading!

Nonsense! I have personally tested the top 20 candlestick patterns with automated algorithms, and massive optimizations in terms of MM, ATR adaptable stops, targets, pyramiding ect.( back tested for the last 15 years on all timeframes) and the results show absolutely no statistical edge. Over the long run the expectancy per trade ALWAYS go back to ZERO, minus the spread! (that's way it is called zero sum game).
Do not get fooled by randomness and popular myths! Candlestick by themselves offer no edge. So if you try to blindly trade these patterns, I have bad news for you - it's a waste of time!

Without volumes, candlesticks analysis makes no sense.

They work because they reflect market action. A full bar stripped to its low before your eyes tells you something you understand when you are trying to visualize a top. But they are incredibly unstable and very trying of patience. They also exhibit a certain randomness that makes them less usable than would be nice. For the most part they are so spaced out in reliability (and frequency over significantly actionable ranges) that I doubt making your trades based on them would prove satisfactory in the long run. But learning in this business is by trial and error, besides I am not the universe of traders, just a sample point.

The Crow (-_-)

all b/s above. candles and charts show what happened in the past, which is useless to man or beast. to be a trader it is necessary to accurately forecast what will happen in the future. either you got it, or you don't in which case quit now.

Haha classic retail trader post! Hmmm can't seem go figure out why you guys lose money. Do you really think I went to school for 6 years and got hired at a firm because I can recognise candle stick patterns? Lmao! I wish it was that easy. When you hear professionals say we use technicals 20% of the time, we don't mean candle stick patterns. We mean vix, low/high vol, bond prices, synthetic strips etc. Not some little pattern that's shows what happened to price in the past! Disclaimer: ive just left the professional world and I'm learning to transition into the retail side, trading my own capital.

they work the same as any other 'trick' to win in the forex battle: 50% of the time