Chart Patterns or Candlesticks?

Hi. I am fairly new. I have a lot to learn. I love pivot points. I am not an indicator trader. I don’t like them very much. I do however feel more comfortable with chart patterns and candlesticks. I want to learn more about both. Which would you prefer when it comes to pairing with Pivot Points? I am trying to create a strategy for me to test and tweek. Any help is appreciated!!:slight_smile:

Hey yeah ive had that question myself i figured for a successful strategy in price action to implement them both, look for patterns draw youre s&r lines and use the candlesticks to look for proper entry and exit points i use fibonacci myself, oh and found this list of candlestick patterns that helped me alot still learning tho.
10 Price Action Candlestick Patterns You Must Know - Trading Setups Review good explanations on the candlesticks

Hey mate,
I want to know how come only the candlestick patterns are useful for choosing a position while trading?
Don’t the technical indicators play any important role?
:smiley:

I think only price action is the best. All indicators are based ond price action and because of that they are delayed, so why should be used.

I think you should concentrate only on chart. What is also good is market profile and orderflow. It is little bit complicated but really uselles.

GL

yeah i agree i think a naked chart is alot better, since indicators just didnt do it for me.indicators lagg like hell at least to me they do seem to, dont get me wrong started out live trading with stochastics,rsi and bollinger bands or ema as well and still kept on depleting my account slow and steady. but had an eureka moment when i found out about price action.

I am with you on Price Action. Have you looked into VSA? I am reading a book on it and trying to understand it all.

It has been my understanding that indicators are lagging. I think it is a preference.

no i havent looked into that as of yet, how is it working for you? Im trying to bent my mind around the harmonics right now, but that **** is hard.

Rlt

It is so detailed. I have to go back to economics 101 to understand it. i just want a simple method of trading that I can understand why it works and tweek it to fit me where i need to. I was looking at hormonics before but I don’t like fibinocci. ugh

Hi Burrjc,

You’re in a good place to try to do that, if you’re able to develop the necessary judgement to be able to distinguish between the members here who are making their livings from trading, and the remainder.

“Learning from forums” is a skill-set all of its own. Unfortunately, the judgment and experience to distinguish, in forums, between people who are not much further along the road (if at all) from yourself and successful traders is something that people understandably tend to have least of, when they most need it, i.e. at the beginning.

It was the same for all of us.

Neither do I.

Like many others, I eventually started earning a living through trading only after I’d learned to give them up completely and concentrate on price action (including chart patterns).

“Chart patterns” are a subset of “price action”.

I prefer to throw pivot points in the dustbin, and found doing so very helpful indeed.

Have you read any of the standard textbooks that [I][U]explain[/U][/I] [B]how[/B] to create your own strategy, and to test and tweak it?

Unless you get very lucky, it’s surely going to be monumentally difficult to do, without first doing that?

Even with all the expert tuition and guidance I had, when I started, from someone who had made his living this way for decades, I’d still never have managed it, without doing that, too.

That should be your starting-point, in my opinion.

And here are three recommendations (out of a huge number I read, when I was starting off), to set the ball rolling …

[I]Trade Your Way to Financial Freedom[/I] - Van K. Tharp

[I]Beyond Technical Analysis[/I] - Tushar S. Chande

[I]Profitability and Systematic Trading[/I] - Michael Harris

[U]Key concept[/U]: longstanding, recognised, accredited textbooks published by mainstream, orthodox publishers have stood the test of time and undergone extensive peer-review before ever seeing the light of day, in huge contrast to “internet information” - be aware that there’s no “informational quality control”, [I]online[/I]: anyone can publish anything offering advice, especially when they have some additional services/products to promote. There’s some good information among it, doubtless, but [U]when you don’t yourself have the experience and judgement to identify it confidently[/U], it’s a real lottery, depending on advice from strangers.

Trading successfully is about statistical/probability functions, ensuring that the deck is stacked in your favour, rather than against you.

And so is [I]learning[/I] to trade successfully. :wink:

I prefer to throw pivot points in the dustbin, and found doing so very helpful indeed

I actually laughed (in a good way) when I read that – there is humor in it. Traders are different in every regard. I perceive burrjc likes Pivot Points then he necessarily do not have to through it away. Pivot Points are couples of resistance and support levels so I think for a quick entry and exit, he should use candle stick patterns. Combining Pivot Points from two time frames should do well. I do not use Pivot Points but I have brilliant trader friends that use.

I have been trading with pivot points as reference mainly weekly and monthly pivot points, but nothing is guaranteed. Hence, i mix up the current trend along with the pivot for better trade to be taken.

That has been my take and understanding, I seeked other traders opinion and was debunked of that, Finally I get people who think same

Hey guys,

Price Action based on Candlestick Patterns is your best bet. I will never say Indicators, Pivots etc. are useless, but Candlestick Patterns and Signals tend to simplify things with a lot greater accuracy, especially if used on the Daily and 4 Hour Charts.

Several people have different ways of understanding, interpreting and using Candlestick Patterns, but I have found an approach to using them that works extremely well. This approach is explained in my thread where I give Video Analysis of recent trades and market movements based on these patterns.

http://forums.babypips.com/candlesticks-chart-patterns-and-price-action/73933-video-analysis-daily-4-hour-charts.html

Although Candlestick Patterns are great ways of improving your trading, Support and Resistance is also needed. For example, when trading within Consolidations, some of the Candlestick Patterns can be too large and by the time they appear, the market would have already reached the other side of the Consolidation. This is why it is sometimes better to enter at the S&R areas. This was done on a recent trade made on the GBP CAD earlier this week that captured 102 Pips…

For most of your trading strategies, I recommend Candlestick Patterns over Indicators all day because of their lagging nature etc…but its also good to include S&R in your strategies.

[B]
Duane

DRFXSWINGTRADING[/B]