I'm looking forward to this thread also since I love candlesticks trading. I like trading 4 hour charts though and nothing is better than a nice hammer
"closing" @ the 200SMA
. Or even a morning star on the daily at the 200MA, then a hammer on the 4 hour close.
Topgun
Quote:
Originally Posted by tymen1
Well, I think it is my turn to reply :
One great advantage of candlesticks as I see it is that you do not need to look at other time frames to trade. Of course you can do so if you wish but the candlestick patterns do tend to stand on their own.
Take the evening star pattern. It tells you to trade short - no ambiguities.
That does not mean that it will not fail, but the choice is clear.
With indicators, several time frames are needed to confirm the direction of the trade.
Now there is a qualifier to all this - I am writing from the perspective of a scalper.
But there is another condition that makes the patterns even more reliable ..............................next post.
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