Candle Patterns are not important? | Forex Factory

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Candle Patterns are not important?

  • #1
  • First Post: Sep 1, 2017 9:56pm Sep 1, 2017 9:56pm
I have seen some traders only trade with support and resistance lines.. they dont care about candle patterns for confirmation.
What do you think guys? Do we need to pay attention to candle patterns?
Life Is Good
  • #2
  • Sep 1, 2017 10:08pm Sep 1, 2017 10:08pm
Depends, me on the other side, don't care about support/ressistance but only use pattern.
  • #3
  • Edited Sep 2, 2017 6:56am Sep 1, 2017 10:13pm | Edited Sep 2, 2017 6:56am
I don't use either one. I use a candle shape merely to help me determine stop loss points and could care less about historical trades. For me, support/resistance lines are created from dead trades and are therefore meaningless. I am only able to make money based on today's trades by averaging the current prices and trading on their movement. I have heard and seen posts that other traders are able to make money trading yesterday's trades by using yesterday's highs/lows as if they are boundary lines on today's trades, or by using some form of hocus pocus candle shape from some indeterminate time frame to determine price direction, but I am not much of a fortune teller, so it doesn't work for me. However, if you group candles, as in "average current prices", that is a different discussion. I like to convert higher time frame range trades into lower time frame trend trades because it makes it easier to track price direction. The "individual" candles are meaningless, but the overall sample size creates intraday swings. Not sure if that is the pattern you are referring to though. I identify each intraday swing, then identify the swing within the swing and ignore everything else. I target the sweet spots where price actually moves vertically because that is the only movement that pays money.
You cannot be extraordinary by being normal
  • #4
  • Sep 1, 2017 11:04pm Sep 1, 2017 11:04pm
I do trade avg price. All over the chart. Thus getting trades at the farest corners, too. These are the guys who actually pay for the whole show. Hedging instantly. Flipping when neccessary. Eventually, just before closure, ending up with 90-95% one direction trades. Simple and stupid, but it works fine for me.
Maadik Hugiis. IQ 69.
  • #5
  • Sep 1, 2017 11:10pm Sep 1, 2017 11:10pm
Personally I don't pay attention to 'Candle Patterns'

I only care that the candle/Price shows strong momentum.

And depending on the strength of this momentum, I may give more or less importance to the coming support/resistance level.
  • #6
  • Sep 2, 2017 3:20am Sep 2, 2017 3:20am
Quoting cowcool
I have seen some traders only trade with support and resistance lines.. they dont care about candle patterns for confirmation. What do you think guys? Do we need to pay attention to candle patterns?
"Confirmation" ? What does a candle pattern confirm ? That it will grantee that price will go in that particular direction ? No, it doesn't and if it doesn't give any value to the price movement then its better to trade support and resistance which will increase your profitability since you are getting early in the market. Oh and market players get in at support and resistance which is why market bounces from that level, they don't get at top of candle confirming it.
  • #7
  • Sep 2, 2017 9:32am Sep 2, 2017 9:32am
Quoting cowcool
I have seen some traders only trade with support and resistance lines.. they dont care about candle patterns for confirmation. What do you think guys?

They're perhaps people who don't understand that candle patterns are "support and resistance": they just very, very localised support and resistance.

It's all about support and resistance.


Quoting IPMan
don't care about support/ressistance but only use pattern.

You're looking at "immediate S/R", whether you know it or not, because that's what "candle patterns" are.
  • #8
  • Sep 2, 2017 9:35am Sep 2, 2017 9:35am
I trade support and resistance.

Imagine once upon a time a pair X/Z was traded at the first time and that was the first tick on the chart. The country X had better economic condition, while the country Z hadn't. So the the second tick went north and we had the first support to mark. When the price went back south to the newly formed support to test it, we had the first resistance.

Let's ask ourselves. Was the first tick created appropriately regarded as the SR or candle pattern?
  • #9
  • Sep 2, 2017 9:43am Sep 2, 2017 9:43am
Quoting KarlKraus
candle patterns are "support and resistance": they just very, very localised support and resistance.
Quoting KarlKraus
You're looking at "immediate S/R", whether you know it or not, because that's what "candle patterns" are.

Finally somebody posted something sensible in the thread. Thanks, Karl.
  • #10
  • Sep 2, 2017 11:47am Sep 2, 2017 11:47am
Quoting cowcool
I have seen some traders only trade with support and resistance lines.. they dont care about candle patterns for confirmation. What do you think guys? Do we need to pay attention to candle patterns?
Candle patterns don’t work in most charts because traders use the wrong open and close time.
Daily open is very important for support and resistance. Place a horizontal line at daily open and look what’s happening.
  • #11
  • Sep 2, 2017 5:27pm Sep 2, 2017 5:27pm
Quoting MetBo
Candle patterns don’t work in most charts because traders use the wrong open and close time.

Opening and closing times of candles (or bars) are user-defined. We're all free to chose what periods and starting-times we want. The same price information is available to all.


Quoting MetBo
Daily open is very important for support and resistance. Place a horizontal line at daily open and look what’s happening.

Spot forex doesn't really have a "daily open", per se , since interbank trades 24/5- or rather, it has several, as different major time-zones representing significant volumes each open.
  • #12
  • Sep 2, 2017 6:33pm Sep 2, 2017 6:33pm
Quoting KarlKraus
Opening and closing times of candles (or bars) are user-defined. We're all free to chose what periods and starting-times we want. The same price information is available to all.
Opening and closing times of daily candles are broker-depended, especially when you are using metatrader, because MT is printing candles in broker server time! Firstly you have to check which timezone your broker is using after that you can determine the correct daily open/close.
Look at the 10pm gmt open price. This is the correct daily open.
Quoting KarlKraus
Spot forex doesn't really have a "daily open", per se , since interbank trades 24/5- or rather, it has several, as different major time-zones representing significant volumes each open.
Yes absolutely right. The daily candle is just a complete cycle of the forex sessions (asia, eu, ny) - nothing more.

Well back to topic: just my 2 cents regarding the thread ... If you are using different open/close times, you will get different candle pattern with different behavior.
  • #13
  • Sep 2, 2017 6:42pm Sep 2, 2017 6:42pm
I find more important this: price levels (S/R), pullbacks and events ... and differentiate price behaviour on pairs (each pair have own behaviour)
  • #14
  • Sep 2, 2017 7:17pm Sep 2, 2017 7:17pm
Quoting KarlKraus
{quote} They're perhaps people who don't understand that candle patterns are "support and resistance": they just very, very localised support and resistance. It's all about support and resistance. {quote} You're looking at "immediate S/R", whether you know it or not, because that's what "candle patterns" are.
Looks like you have no idea about how institutional world works. So if you consider candles as SR then this SR should only belong to amateurs and newbies. Institutional players and professionals enter before these candles start to form.
  • #15
  • Sep 2, 2017 11:39pm Sep 2, 2017 11:39pm
How about daily close?


Quoting MetBo
{quote} Candle patterns don’t work in most charts because traders use the wrong open and close time. Daily open is very important for support and resistance. Place a horizontal line at daily open and look what’s happening.
Life Is Good
  • #16
  • Sep 2, 2017 11:42pm Sep 2, 2017 11:42pm
Where can I learn the institutional sr?Any excellent resources you can recommend?

Quoting SulemanMehmo
{quote} Looks like you have no idea about how institutional world works. So if you consider candles as SR then this SR should only belong to amateurs and newbies. Institutional players and professionals enter before these candles start to form.
Life Is Good
  • #17
  • Sep 3, 2017 4:14am Sep 3, 2017 4:14am
Quoting cowcool
How about daily close? {quote}
In fx world normally close = open new day because of 24/5
  • #18
  • Sep 3, 2017 5:01am Sep 3, 2017 5:01am
Quoting KarlKraus
{quote} You're looking at "immediate S/R", whether you know it or not, because that's what "candle patterns" are.
Agree, but there's a bit misunderstanding here, pattern is not always related to candle.
  • #19
  • Sep 3, 2017 7:30am Sep 3, 2017 7:30am
Quoting IPMan
pattern is not always related to candle.

The thread is about "candle patterns".

If you're saying that a candle pattern is not always related to candles, then you're talking a language of your own.


Quoting IPMan
there's a bit misunderstanding here.

You can say that again!
  • #20
  • Last Post: Sep 3, 2017 2:20pm Sep 3, 2017 2:20pm
Quoting SulemanMehmo
Looks like you have no idea about how institutional world works.

If you say so, Suleman - that wouldn't speak too highly of my memory, though, since I spent 12 years on a trading floor.


Quoting SulemanMehmo
So if you consider candles as SR then this SR should only belong to amateurs and newbies.

I didn't say that, my friend.

I think possibly you may have either misread or misunderstood my post.

I said that candle patterns represent very, very localised S/R.

And I'm still saying it, too, because they do.
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