Hi, just started reading under elementary and the varieties of candlesticks are mind boggling! When you first started playing forex, how do you cope with learning candlesticks?
I first went to look for forex traders who expertised in candlestick trading which led me to steve nison. You should check him out as he is one of the famous people about it . He have few books on candlesticks which I find valueable. I even downloaded videos about his seminar and find it really informative.
There’s a lot of resources to learn from online, so that’s what I did. I looked at youtube videos explaining candlesticks and other things that I was confused about, learned about double candlestick models on profiforex, asked around on reddit and other forums. The internet contains almost everything you need to know about everything. 
Hi, I am newbie as well, but have been trying candlesticks for past few months and loving them. I used them mainly for reversals, so I only look at reversals candlestick patterns.
My advice is, no need to confuse yourself memorizing all the candlesticks pattern. Just learn a few, try to spot them, and trade them.
These are my favourite reversals candlesticks pattern :
- Engulfing candles
- Abandoned baby
- Dark cloud cover
- Piercing pattern
- Evening Star
- Morning STar
Good luck anyway
i ignored them immediately after noticing that people tend to create new “patterns” and “formations” from basic core ones, give them fancy names, treat them like magic symbols, etc. later on you’ll notice the same thing, expanded. instead of patterns of 3-5 candles, you’ll have animal cracker shapes to “learn” (or ignore, in my case), like bats and butterflies and swans and ducks and pigeons and a wombat.
humans are INCREDIBLY good at not only recognizing existing patterns, but also in FORCING patterns into existing groups of elements.
Don’t try and cram them all into your brain at once. Learning is a gradual process if you want to retain the information- which you definitely do in this case. Just focus on learning and mastering one or two at a time. Once you have it down, move on to others. It’ll take some time but you’ll get it eventually. 
At the very beginning of my learning, I tried to memorize all the famous patterns.
Yes, it was useful for a while. But I started wondering, “The exactly same candlestick pattern never repeats, and those patterns have false movement. What’s missing?” After one year of struggle, what I had found was that the “movement” behind the patterns.
For example, when you see a “doji” with long wicks, what do you think? A textbook says that it’s a possibility of the trend reversal. This is not enough for wanna-win traders. If you see the same candlestick in the shorter time frame, you will see the closing movement either move up then come back down to the close price or move down then come back up to the close price. If you see this movement, you can decide whether to stay on the position or exit, and the possibility of winning increases.
This is just one example.
Candlestick charts are real time and keep moving, big or small. Observe those movements and try to read the market sentiment. Once you become to be able to do this, almost all those patterns will make sense and don’t need to memorize. (Ah, you will remember all by then, though.)
Happy learning!
Candlestick charts represents price movements. Question is how?
Well, each of the candlestick represents the highest and the lowest price within a specified time say for 1 hour. Thus top of the candle stick says the highest price within this 1 hour and the bottom shows the lowest price within this 1 hour. So you can see what price did hour by hour.
Hello Everyone
I’m new to this forum and FX trading.
Almost every day I read the materials from “school” and I have a question! Now I am at the elementary level and here, in the third level’s (“Fibonacci”) first lesson (“Fibonacci Who?”) I found the following definition:
"A Swing High is a candlestick with at least two [U][B][I]lower highs[/I][/B][/U] on both the left and right of itself.
A Swing Low is a candlestick with at least two [B][U][I]higher lows[/I][/U][/B] on both the left and right of itself."
Read more: Fibonacci Who? | Fibonacci | Learn Forex Trading
So I hope someone would like to take a min. to answer me?
What does lower highs, or higher lows mean?
Anyone willing to explain in normal, simple language? Preferably with examples (charts).
Thank you.
Beka
Hi Beka
The following chart explains what’s important in reading price. I hope you find it useful
Hmmmmm, the chart won’t expand for me. Here’s the text from it:
Quote box: This is obviously (in hindsight) a swing high, yet there’s no candle confirmation to tell you so. Not even on my H4 chart to the left
Main text: The reality is that candles in themselves are a reflection of price movement over a period of time, and time isn’t a factor of price movement.
So, although sometimes you get a nice pinbar or outside bar, these are just irrelevant manifestations of what happened to price.
In this chart, the important events had absolutely nothing to do with the shapes of candles. So what were the important events?
The first was candle 1 breaking demand A - this told us that price wanted to reach the next demand - the base of the pole at B, which candle 2 hit
Then (just to answer part of your question), price capped at E - making a lower high 80)
The second was candle 3 breaking the flag limit C and flipping at D, meaning price wanted to hit the next demand, F, at the base of the pole
But not all of the big guys’ orders had been filled, so they let price rise back up to the cap E at 4 so they could sell again and let price plummet to its target.
What was really important about the swing high, X, was not a candle that formed there, but a mix of what had happened at that price long ago, and the engulf of A with candle 1
Oh. Here’s the chance to see the chart 05.08.2013-08.47.21 - Ifmyante’s library
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Thank you.
Hi to everybody.
I’m totally new in the trading, however i’ve already blew up my Demo account for 3000. I tried to use all types of analysis: candlesticks, fibonacci levels etc. Do they actually work?
Yes, they work. But they aren’t a skill you just have overnight. You have to learn how to properly interpret what the charts or circumstances are telling you. I saw your post in another thread- talking about how you didn’t think it made sense to name candlestick formations and try to make predictions based off of them.
Well, chart reading is a skill that needs developed as well. A pinbar in the right location can set the stage for a coming reversal provided it’s in a good location and other market conditions favor it. No one will ever have a 100% win rate; but candlestick formations often become a self-fulfilling prophecy. If you see a clear cut engulfing bar on a S/R level- well so is every other trader. The more people that can assume this is a great signal, the better chance it has to go in your favor because more people aren’t going to want to miss out on the opportunity.
It’s always an educated guess.
Pick a strategy (jump down to the Free Trading Systems forum if you have to) and just keep working to master it and the components that make it work. It’ll take practice but you’ll get it eventually. I think I spent a year and a half trading unprofitably before finally turning the corner.
well, it is true)) But here is the thing I can see people who say that they are newbies and then they’re so much convinced into using different analysis methods, saying that it is an only one true way of trading that’ll lead you to the bright future and might also cure the cancer and stop all the wars. Now in thinking if it’s me too stupid to realize the possibilities of all these things, or peoples just getting too much involved in what they consider to be right.
Hello Ursus,
Would you mind posting some of those trades that you took, then the experienced traders will be able to assist you with this.
well, unfortunately it was before i actually realized that i need a good advice and i’m not able to figure out everything by myself, so i don’t have any PrtSc. My overconfidence will eventually kill me:15:
If they really were, 98% of traders would be profitable)
Yeah you’ll find people trying to sell a “holy grail” idea or “my way is the best way”. But the people doing that are branding themselves as the ones to not listen to. Trading can be approached so many different ways. There really is no “right or wrong” so long as you’re meaningfully profitable. Look at strategies until something really resonates with you that you feel is presented well, from a factual basis. “OH THIS SYSTEM IS GREAT” does nothing for you. Always look for facts no matter what you’re researching. If there’s no facts, don’t waste your time. It’s honestly that simple.
Using the kinds of things you talked about can be successful provided you’re actually using them correctly- which a lot of people do not.
Hi Friends,
I am a new in forex trading. I am reading the books and try to understanding the concept of Candlestick formation, Support and Resistance and others. My question is that what time period I select for trading for example (short term 5 min, 15 min, H1 or H4) or (long term Daily, 5 Days, 15 Days or 30 Days) Plz I need your guidance for start my trading.
Thanks
I usually use Tf H1/H4 for analysis and entry base on 15M/5M (short-middle term). or D/W for analysis and entry base on H1(middle-long term)
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