I’ve got to say it, a big fat thank you to the Japanese, for inventing the good old candlestick. I don’t know how anyone can stare at those tick charts all day! Boring! At lease with candlesticks you can throw a bit of colour on them, brilliant!
So anyway, I wanna start a nice fun thread about peoples favorite candles and their formations.
I have to say that my favorite would have to be the old reliable pin bar, or hanging man, or shooting star, or whatever you want to call it, that thing is awesome. But only at certain times, like when its sticking right out the top of a range, all on it’s own, signalling a very likely reversal in price action.
I’ve always got a smile for the pin bar.
So what’s yours? Maybe the ominous [I]marubozu[/I], woooo. Or, perhaps the playful spinning top? I’d love to hear what your favorite is, and how you use it.
I’m actually to the contrary on this candle topic, I prefer to use line charts as I find the wicks to be of no actual benefit. The close price in my view plays more importance to my own analysis and the wicks are just noise. I actually find it quite funny when people suggest what is about to happen to price with respect to a single candle ‘pattern’ or a selection of candles forming a shape!
In fact, I don’t even know the last time a particular candle shape held some strength. All these head and shoulders, spinning tops….and the rest. It’s all total nonsense
Me? I love all of candlestick patterns
U hv to see the bigger picture
Tripple top formation follow by 3 black crow!
Ttz awesome
Than on retracement, if u see a bearish evening star or bearish doji star, ttz pretty awesome
Tp wise?
Theres a certain num of gaps that need to be seen or was seen previously.
Ttz about it.
Pure naked candlestick.
Ttz how i invest in market
As it is im Shorting euro dollar since 1.425
Adding more lot every 300 pips down.
Im looking to tp on march.
generally I am zoomed to far out to really see the candle. I was burned to many times on the doji to look at formations. nut the classic reversal formation (dont remember the name) but its an up candle then another up candle (with a nice wick preferably) then a down candle that closes below the 2 previous candles. Small stop depending on the setup high reward.
DISCLAMER: notice I did not say low risk as you set your risk no matter how small the stop. DONT OVER LEVERAGE.
Hell yeah! I’m really feeling the love in this thread!..Except from you Jezzode, you cheeky candlestick hater you.
Here’s another reason why I love them just so damn much, it has been said that securities don’t sell for what they’re worth, they sell for what people think they’re worth, so therefore being able to gauge the market’s sentiment towards a particular security would be invaluable! Well I think so, and that’s why candles are the eff’ing bomb! A good one can tell you at a glance what the markets sentiment was during a particular trading session, whether that be 1 hour, or 1 week! Surely that’s gotta be useful right?
What have you got to say to THAT JEZZODE
For all you other candle junkies: take a look at this bad boy from a few days ago, my favorite pin bar, right at the top of a retracement, smack bang on the 50% Fibonacci retracement level, oh yeah.
Well I thought the same, I even made a thread on it. but the general idea seems to be that these formations are “nearly useless”… probability of some formations will give a “little” above 50% win rates. But with correct MM and RR this small increase is “an edge” and helps in the long run.
So if a formation wins for someone 55% of the time, indeed it is “nearly crap” but a small edge of 5% can go along way over time.
I learnt this in the thread and I have to say I was sceptical. But After thinking about it, a win rate of just above 50% using formations to help you … I’d take 55% over 50% any day… wouldn’t you? So best to pay attention to some of these formations. Not worth to ignore them.
