Ok I have been going through as many threads as possible but one thing I find that keeps popping up is that candlesticks do not play an important role in peoples trading?
Is this true?
Surely with some reversal patterns they help the trading?
It’s not wise to just trade candlestick patterns themselves. Couple it with some other methodology and it increases your edge significantly. As for myself I look for patterns around trend lines and fibonacci lines.
The more confluence you have the better. Those two combinations may be good…wait for divergence on macd, then wait for candlestick reversal. Try it out. I take it you are a newbie. Go explore, try new things. It’s the best way to learn. Just don’t risk more than 1% per trade starting out. Once you get better, let 2% be your limit indefinitely.
I use price bars as well, even though it’s exactly the same data the different perspectives can help a lot. I find price bars are good for quickly identifying PPZ (price pivot zones) and candles are good for sizing up the bodies and wicks of candles/bars.
Using PA instead of indicators is part of a weight of evidence method which can include lots of factors such as S/R, fibs, trend lines, divergence, MAs, what’s going on on the higher and lower timeframes, chart patterns, correlations, fundamentals…