candle stick, your enemy or your friend?

this is just my opinion.im trading since 2012.im burning many accounts.im deposit many times.with many broker.good and bad.do ever withdraw, oh yes i ever.many times too.its not about it.its about how people trading with prize action using candle bar.

i saw candle bar its my enemy at the time.because im day trading and scalping.macd stoch rsi,its my second number enemy.engulfing tail pin ohh.its manipulated me.especially with bad broker with bad spread.

different broker differnt candle.their spread drive candle,than its drive indicator too.

people said MM its your friend.yes it is true.short time frame is more difficult.short time frame + candle bar will burn you.its my quote

Relying purely on candlestick patterns will burn you! but if you use it in combination with other things then they may increase your trades probability.

Personally, its my friend. I'm not using it to find specific pattern, but i'm using CandleStick to measure momentum.
ex. Increase in momentum long after a range break usually followed by reversal/range bound PA, ..etc.

clearly you should go back to demo. train your eyes to look at the correct stuff. not candles nor colour of candle.

set candles (bull & bear to same colour) and look at price action instead

cheers

I have come to a stage where there are:
1. profitable candles
2. break even or even losing candles...

in the BE/loss type of candles, a lot of money can be made, still. Not with the same approach taken into the profitable candles, of course.

I see four types of candles:

1. Full Bars
2. Cross-like Bars
3. Pin Bars
4. Normal Bars (anything that is not 1 to 3)

If one trades just the candle itself, I do not see how something can go wrong there... Normal and Full Bars candles are about 55% to 70% of all candles and they require exactly the same trend-following strategy. That strategy will be in no help if the candle happens to be a Cross or a Pin Bar. The approach with these candles (30-45% of all candles), must be range wise. It is as simple as that...

Hallo MoneyZilla,

Would you please explain further your 4 types of candles? it sounds GOOD.

Thanks,
anton

Candlesticks is just bars with a filled body, if this gets you confused then switch to bars,

Anton, you are flattering me. Anyway, here is the indicator I have made and daily using to try positioning straight into the candle's body. It works well in about 60-70% of my tries. Once in the candle's body, I think, you know it from here, there is just ONE direction

@mhejek:
I am a pure chartist and it works for me. Trick is to understand what market is telling you through candle sticks ... to understand what candle sticks actually represents.

Dear MZ,

Could you explain more about how to use the Patternzilla Indicator, thanks a lot!!

Raw market generated data is not reported as a linear series. Lets define exactly what is a candlestick/bar chart.......

The market is reported as ticks, Price and the time in which it occurred (2D)
What happens next is the data is "subjectively" broken into TF's ( 1m, 5m, 15m, and 30m.etc.) depending on the viewer. This artificially skews the data. Each place where the data has been "subjectively" broken into TF's creates a artificial high and a low. This is "subjective" info because it is biased by the observer's choice of TF. Already you have "flaws" in your data set. You are now using data "once removed" from its original market generated Price *Time format.

As I mentioned before
Tick data does not have an open, high, low, or close quote it simply tells the previous price. The OHLC quotes occur only after tick data has been collected and coerced into interval data, such as one minute, one hour, one day, or any other selected duration". the forex charting companion -Archer
Pasted from <https://www.forexfactory.com/showthr...6#post10357556>

Now that the data has subjectively been broken into TF's. The data inside the timeframe(candlestick) is now "sorted" (rearranged) into a linear "series" from high to low forming a bar/candle. Now you have skewed your data set once again. Remember the tick data didn't start out as a linear series. Now your data is "twice removed" from it's original context (market generated price *time format) Your candlestick TF's only look like a "series" of prices from high to low, because you manipulated the data to do so.

This is not what the industry considers to be "Market Generated info"

What is market generated info?
Trading data from market activity organized to display both price and time

"The difference between the current, "illogical" approach and the "logical" approach is the type of information used and how it is analyzed (e. g. , outside information related to the market versus market-generated information related to it).

In the current state, almost all transactional information, information derived from newspapers, retrieval services, and even live quotes disseminated by vendors, falls into the classification of "information outside the market". (Most people are surprised that live quotes are not included in the other category, market-generated information. But upon examination, live market quotes are not formulated into a statistically measurable and logically sound arrangement of data which provides information. ) In other words, transactional information is either presented in tabular, numerical form or else reorganized and presented in graphic chart form". -J.Peter.Steidlmayer Markets and Market logic

OHLC data is such a skewed "misrepresentation" of market generated info, it is classified as "outside info"……..

what's the opposite of "outside info"?......"inside (informed) info"

You have no edge when you're trading using "outside info"…...
You need real "market generated info" to make sound & logical trading decisions

It could be both. Price = candlesticks, line, bars and whatever you call them. Price is what we need. Without price we're done.

I've attempted to catch full bars, no matter the direction.
But got screwed due to all other kinds of bars... is it possible to filter them out based on the previous candle ?

I have never managed to make it right with the filter. Therefore I have found an inexpensive way to survive while waiting for the big bars. I reposition multiple times, based on OCHL prices of the previous candle, taking positive and negative turns. The negative turns are the majority, but the positive ones lower the DD... and I survive.

I personally just check what is the average size of a candle and it's wicks size as well. PZ is just a tool for measuring the average pips any time frame delivers.