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Attachments: About Candlesticks: Why they were created? What do they reveal?
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About Candlesticks: Why they were created? What do they reveal?

Quoting forrestang
{quote} I bought that book a long time ago too. Candlestick patterns are another TA tool that is next to useless. I'm just pointing out, that we really don't know WHY a candlestick was created. It may very well be that it was just a different visual appearance, could be some other reason? The point of the thread also, is about looking for viewpoints alternative to the common things you see on forums, and most of the things you see on forums is b.s., and most of it is regurgitation from other people who don't have a clue about trading. I think sure,...
Yeah nothing is useful in isolation. They can be a great complementary tool, but many of the patterns do fail. I don't use them much in terms of trading decisions, but they are nice to look at compared to boring bars. To me, they really do make the price action stand out more. If you compare a trend bar from a bar chart and a marubozu candle, the marubozu candle will grab your attention more quickly. Think of it as typing in bold as opposed to italics. Same words, but one stands out more.
Quoting forrestang
{quote} I bought that book a long time ago too. Candlestick patterns are another TA tool that is next to useless. I'm just pointing out, that we really don't know WHY a candlestick was created. It may very well be that it was just a different visual appearance, could be some other reason? The point of the thread also, is about looking for viewpoints alternative to the common things you see on forums, and most of the things you see on forums is b.s., and most of it is regurgitation from other people who don't have a clue about trading. I think sure,...

Candlestick exist because the Orderflow...

im agree with you...Candlestick patterns are another TA tool that is next to useless.

if we can understand how mechanism of orderflow to build the candlestick.. i think everyone will suprise how useless the candlestick
Made in Malaysia <3
I looking for a friend to discus my trading concept called THE LAW OF BALANCE. I found this concept after watching market for several years. I realize that price is not random,but this is something was arrangement. Chart and many indicators will be shown in our computer after traders do selling or buying. And market will do selling or buying after news was released. News must be realesed just because every country must be keep balancing their currency from others. No one countries in this world let their currency lower than others. neither high! unbalane will be happen if the price dicided by market. No more transaction or loan anymore in this world ! I never follow any technical or fundamental, because it useless. As I told you that technical just followed the price. You can see it if you pay more attention of it, that's why we are as a trader feel like technical lie to us. And fundamental is just tools to makes currency balancing. That's why news working for only a minutes, or even second! All we have to know is limit up and down from the open price in every TF. That's why chart not created flat, but up and down!
Quoting 030985
{quote} That is something we don't know. And that's why my post is maybe not as informative as you think. "25% probability price will move to 35 before retracing of 10 points or more" seems to mean that there is NOW 75% probability that a retracement of 10 points or more may occur before price gets the chance to reach 35 (if it ever reaches it). The retracement (downswing) could happen now, or it could happen at 20, at 25, at 30, even at 34. We don't know. 030985
Thanks for clearing that up. Too good to be true.
Have you looked at past trends and the rates of pullbacks? Ie 500 pip up trend x% of time max pullback is 50 pips etc.
One idea:
@ daily open place 1 long & 1 short
Both SL @ daily body range
Both TP @ daily body range + 1 daily wick range

Edge: 1x daily wick

Another idea:
2 reference points: 1 monthly or weekly
Only long above monthly or weekly open

@ daily open place long order with
SL @ daily body range
TP @ daily body range + 1 daily wick range
Quoting Madinvestor
{quote} Oh you mean the history and all that. Well, no. I can tell you from reading Steve Nisson's books (you can Google him) he is considered the authority on candlestick patterns and his books will explain all the extra details you would like to know. Something like Japanese rice traders or something started it..can't remember the rest of details. Didn't really care. I just wanted to know how to use them, but you can check it out for yourself.
Nison will go down as the only man in history that can discover a chest full of gold, empty it out and triumphantly return with just the chest.
Quoting 030985
Hello, Recently I did some researches concerning upswings and downswings : If price moves up of at least X points, from a bottom, it is considered as an upswing. If it moves down of at least X points, from a top, it is considered as a downswing. Obviously, one upswing is followed by a downswing, and a downswing is followed by an upswing. (Think ZigZag indicator) I studied Dax index, for different X variable on 6 years of intraday data, and interestingly it revealed some constant numbers whatever the variable X was. As I am not that smart I am actually...
Hello,

Here are some more datas. Maybe some of you may find them useful.
(By the way, if you are interested in researches concerning swings data I suggest you take a look at Relativity's threads and her posts.
https://www.forexfactory.com/relativity )

These are some stats regarding 2 legs, 3 legs, and 4 legs patterns. From my past researches it should be more or less the same numbers whatever the parameter you choose for the minimum size of the swings, and any instruments. Here it is based on the Dax index with same datas as in my last post.

2 legs patterns :

Attached Image (click to enlarge)
Click to Enlarge Name: 2legs_pattern_prob.png Size: 5 KB



3 legs patterns :

Attached Image (click to enlarge)
Click to Enlarge Name: 3legs_pattern_prob.png Size: 10 KB

edit :
For the 1st pattern, leg #3 > leg #1 = 52%
For the 2nd pattern, leg #3 > leg #1 = 54%


4 legs patterns (only most frequent and rarest patterns listed) :

Attached Image (click to enlarge)
Click to Enlarge Name: 4legs_pattern_prob.png Size: 18 KB

edit :
For the 1st pattern, leg #4 > leg #2 = 63%
For the 2nd pattern, leg #1 > leg #3 = 57%


030985
Basically, the candlestick chart is the same as the bar chart. But with color on each candle, we can see clearer which candles are "on" the current movement and which aren't ... Thus, hopefully, we can "read" the market faster and easier ...
Market is not random but unpredictable
Well guys, think about it. How did the old fraction evaluate trade entry and exit without computer and any science?? They just used yesterday’s ohlc to get the information for the current day.
Why is information on the invention of the ohlc/candlestick hidden ?
The founders names, the logic behind it, the reason for it.
Its like some kind of a conspiracy involving the leak of the ohlc concept to the public, which was followed by the total bastardization of it...
P.S. The "Intellectual" onanists who rape the poor bar even further by making up all the fancy "price action" are a major part of the problem also. However fortunately for them and their overbought inverted bearish dojipin bar, they don`t care about becoming profitable traders, they already have a zero risk grail which is - "Why risk money trading if you can just leech of foolish aspiring traders"
The truth is hidden from you
Quoting kprsa
{quote} This version is nicer and easier to compare between the approximate total buy and sell volumes to anticipate what happens next. k {image} {file}
Hello kprsa,
I have zero knowledge in programming and I hope my request is not a nonsense.
I would like to ask you if you could make a modification to your VolUpDn_sep indicator.
Could it be possible to have a version in which the plot is a line that is the running sum of the algebrical value of each histogram.
The line should be free to go up and down without boundaries.
The absolute value of the level of the line would be of no importance, it should simply depend from the lenght of the candlesticks history loaded on the chart.
Thanks a lot
Valter
Quoting valter
{quote} Hello kprsa, I have zero knowledge in programming and I hope my request is not a nonsense. I would like to ask you if you could make a modification to your VolUpDn_sep indicator. Could it be possible to have a version in which the plot is a line that is the running sum of the algebrical value of each histogram. The line should be free to go up and down without boundaries. The absolute value of the level of the line would be of no importance, it should simply depend from the lenght of the candlesticks history loaded on the chart. Thanks a...
Hi valter,
see here:
Attached File(s)
File Type: mq4 VolUpDn_sep_2.mq4   1 KB | 416 downloads


Cheers,
k
Quoting kprsa
{quote} Hi valter, see here: {file} Cheers, k
Hello kprsa,
many thanks.
I will test it in my trading and I will let you know.
Regards
v
Very good quality thread, I'm upset because it died. I'll try to revive it with one question:

Quoting Pipalicious
I soon realized that the actual price chart - irrelevant of timeframe - was in fact an indicator. In other words, the price movement of eur/usd is an indicator.
Personally I really agree with this statement, I even think that, as another member said on this thread, we can't found our decisions on this indicator nor into others.
So on what should we rely when making our decisions? If we can't even rely on past movement, candlestick formation, indicators ecc.. where should our edge lie?


Btw.. I read all CP posts, he opened a new world to me... Unfortunately I discovered this place too late and no one still talking about, so if there is someone who's still into these ideas I would like to hang out and share some thoughts.

Have a nice day.
There is no try
Great thread !
I think i ' ve discovered edge in single candlestick
Thanks all contributors !
Quoting Rushart
I looking for a friend to discus my trading concept called THE LAW OF BALANCE. I found this concept after watching market for several years. I realize that price is not random,but this is something was arrangement. Chart and many indicators will be shown in our computer after traders do selling or buying. And market will do selling or buying after news was released. News must be realesed just because every country must be keep balancing their currency from others. No one countries in this world let their currency lower than others. neither high!...
I agree with you. Market itself moves, dont give a sh** about technical or fundamental. But if it moves random, i think no one can make money from it. Like you said , it moves base on LAW OF BALANCE. That is quite interesting.
Idk lol, but I know that I love their existence. I've always been fascinated with candlestick graphs because I feel like there's some sort of mathematical code to be cracked with them one day, although that would of course invalidate their very purpose. When I trade, I'm mostly looking at the 1m/5m/15m concurrently, and I look for the 3 timeframes to align as best as they can. What I find is that when they are "enharmonic", their movements are far stronger than if they're all different. the 1m will generally be the catalyst to show strength for the 5m and 15m as well, which to me shows that there is some sort of harmony amongst timeframes. I believe this is ultimately all tied to price action, and the correlation is undeniable. Very interesting phenomenon for sure, and I believe it to be heavily self-fulfilling prophecies at this point. That being said, if everyone is partaking in a self-fulfilling prophecy, well then it's bound to work!
Quoting 030985
{image}
That, my friend, is a rather clever way to depict the complexity of the market. And it's a method of summarizing price that I've been using in a modified form for some time now. Of course, I would be very interested to know if and how you use these 'cumulative' candles (especially if you use the reference points = OHLC in a certain way).

Would you please so kind and share the indicator if you still have it in your possession? Thanks a lot in advance!
Quoting Sis.yphus
{quote} or This... {image}
In my opinion, this is the greatest tool. What could the mid-point tell you? Although CrucialPoint wrote about it in his post, there's much more ... Have you already about about using it to de-lag your decision making when managing your trades?
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