Forex Factory (https://www.forexfactory.com/forum.php)
-   Trading Discussion (https://www.forexfactory.com/forumdisplay.php?f=11)
-   -   Is candlestick patterns a losers game? Discuss (https://www.forexfactory.com/showthread.php?t=988977)

vinesh94 Mar 26, 2020 6:14am | Post# 1

Is candlestick patterns a losers game? Discuss
 
So across the journey of trading I've come across different brokers and different methods of entering a trade. One thing i've noticed is that different brokers show candlestick patterns differently. The main thing is that if you were entering a trade using candle stick patterns as confirmation, then how can you be sure that a "morning star" is REALLY a "morning star" - this may just be random candles on another broker and therefore if you were using the same method on another broker it would not give you the signal although price will eventually move in the same direction.

A candle that closes higher than the open on one broker could actually close lower on another broker.

This has made me think that candlestick patterns give signals that aren't actually there.

Do we need an entry method that does not rely on candlestick formations as it could be pure luck depending on what broker you use?

What are your thoughts?

tiborf71 Mar 27, 2020 2:56pm | Post# 2

I don't use that shit approach.

Shabs19 Mar 27, 2020 5:55pm | Post# 3

Not a candlestick pattern per se, but look at the context.

BWilliam Mar 27, 2020 9:00pm | Post# 4

Candlestick pattern like price action is primitive or ancient story telling guessing methods. Most people do nothing more than guess with lines.

dkrock Mar 28, 2020 8:51am | Post# 5

I studied it years ago and determined it was a lot of hocus-pocus. Two major disadvantages to it are 1) it is often historical in nature, so you miss the trading signal, and 2) the shape of a candle changes from time frame to time frame, so which one is correct? If we believe the folklore, it is a product of rice speculation in the 1600's. I think we can do better in 2020. Since the 1600's there have been developments in mathematics. If you consider probability, then the sample size of a candle is "1". Do you want to gamble your account on the basis of "1" instance of something? I know it is common for sports, so if you want to trade like a sports gambler, then stick with it. However the advantage of trading is you can see a direction unfold before risking your money. Let me give you a hint: it takes more than "1" candle to see a direction unfold. Good Luck.

triphop Mar 28, 2020 9:06am | Post# 6

If we believe the folklore, it is a product of rice speculation in the 1600's. I think we can do better in 2020.
Honma, 18th century. His discoveries are timeless, needless to say Steve Nison managed to make a living by missing every fucking one of them

dkrock Mar 29, 2020 2:43pm | Post# 7

{quote} Honma, 18th century. His discoveries are timeless, needless to say Steve Nison managed to make a living by missing every fucking one of them
When you cannot trade, but like trading, write a book and sell it, LOL.


© Forex Factory