Candlestick Patterns

I am looking to learn all I can about Price Action, and Candlestick Patterns. All the indicators I have looked at are just not reliable in the long run, and so I am very interested in patterns and trading using only price.

So, I’m hoping some more experienced traders than me would be willing to have an open discussion here, and help other newbies like me kick lagging indicators to the curb. :53:

As a showing of good faith, I made an indicator that marks different patterns on the chart, and I’m going to share a link to it here Candlestick Patterns.zip (1.64 KB). Hopefully this will give others incentive to share their knowledge, and tools with the rest of us.

Happy trading everyone!

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I’m not sure this is what you are looking for. This guy has a series on candlesticks and charts. His series is short, free and informative. Like I said if it helps you here’s the first one. The rest are listed where you watch this one.
Forex Trading System - Candlestick Trading Series 1 - YouTube

I almost forgot. I’m not vouching for him or used anything other than his video’s on candlesticks. So if you go to his site and if he is selling anything make sure you check it out. Like I said I found his candlestick videos very informative

Good Luck
Gp

There’s also a very introductory lesson on candlesticks here: Forex Training - Basics Of Candlesticks - YouTube

Like the posted above - not affiliated in anyway, just like the videos these guys make and happy to share.

http://rnd.psychonauticresearch.com/Reading%20Room/Japanese%20Candlestick%20Charting%20Techniques%20by%20Steve%20Nison.pdf

Much like the indicators you have looked at, most candlestick patterns are not reliable. Much like the indicators, the candlestick patterns only give an edge “where” they occur, not just because they occur. For every hammer you present that works, I’ll show several that did not. For every engulfing bar that works I’ll show many that fail to even hit 1:1. For every… you get the picture.

If you are interested in price action then learn some other basics to go along with it. It doesn’t really matter what you settle on, be it S/R, trend lines, patterns such as triangles or flags or yes, even those indicators you have already discounted.

Candlestick patterns work more often than not when they occur when they should and where they should. Identifying three black crows or a shooting star out of context is, at the very best, a 50/50 proposition and usually much less. Identifying an engulfing bar at S/R when RSI is moving out of an overbought condition when the larger timeframe trend line is up… now you have something to hang your hat on.

It doesn’t have to be what I stated as an example. It can be volume, fibs, sentiment reports or anything else, really. You have to put those candlestick patterns into the proper context (the context being your particular trading style or plan) to make them work for you. Otherwise, just flip a coin. Your results will not be much different.

Not necessarily true.
I have just finished a pattern recognition spreadsheet which I used
It is back tested for 2 years to a ratio as high as a 80:20 win : loss for certain currency pairs
The following candlestick pattern are my most frequent (averaging at about 3 a month per currency tested):
Bull Kicker (google it) - works on USD JPY, GBP JPY, CHF JPY, EUR USD, GBP USD, AUD USD, USD CHF
Bear Separating lines (google it) - works with USD JPY, GBP JPY, CHF JPY, EUR GBP, EUR USD, GBP USD, AUD USD, USD CHF
and one I invented by miscalculation in a spreadsheet which I call Bull Separating lines. Which works on all the above currencies and a couple more.

I may start posting my recommendations for trades based on my spreadsheet on here, just look for KwesiOQ.
People who tell you candlesticks don’t work probably haven’t done any real research on the matter otherwise they would tell you that “depending on the long term trend certain patterns on certain currencies win regularly!”

In fact I just made 19pips overnight (London, GMT +1 DST) using bull kicker candle on USD JPY - basically a [B]SELL[/B] trade.
Nothing to boast of but at £10 per pip it’s not bad either.

[B]DYOR / Google is your friend[/B] - never trust another man’s word when it comes to Gambling your own money …
I get my dataset from a free site: Free Forex Historical Data: Forex Currency Pairs

I have actually learned a lot from some of the YouTube courses. I realize they aren’t the be-all, end-all, but they do provide some very helpful information.

trade using candlestick chart is more interesting than line or other…
I like it because the reversal of trend can easily be predicted using doji…