Confirmation of Candle Patterns

[grudovz]

Hello you best people on the internet

Do you have any idea of how I can further filter out false candle signals generated on S/R levels on daily timeframes. I've got no idea and am looking for inspiration.

Second awe-inspiring (I am sure) question is how can I learn to more effectively use Moving Averages, some sort of book or sth?

Thank you ladies and gentleman

-daily frame
-on key levels
-wait for confirmation
-in direction of bigger trend

Am I missing something important out

[DRA]

What type of candle patterns youre using?

[Sunland]

Hello you best people on the internet

Do you have any idea of how I can further filter out false candle signals generated on S/R levels on daily timeframes. I've got no idea and am looking for inspiration.

Second awe-inspiring (I am sure) question is how can I learn to more effectively use Moving Averages, some sort of book or sth?

Thank you ladies and gentleman

The thing that took me from confusion to confidence; was when I began looking for indicator clues on charts with smooth trends - and adding S\R, candles and the MACD. (I had asked a Hong Kong broker what indicators he used in his personal trading. His response was that he used the candles and the MACD.) Here's an example chart: There are several valid entry points in this move. The main clues are (in order) the MACD signal line, S\R and candles. (On this move, you can see the relationship of the MACD and a Moving Average, if you put on the 200 LWMA H\L\C.) Checking this out on other smooth trending moves, will go a long way to building your confidence... That one statement from the broker, was worth more than any course I've taken. Enjoy, Suzanne

[jtellett]

Do you have any idea of how I can further filter out false candle signals generated on S/R levels on daily timeframes. I've got no idea and am looking for inspiration.

You can combine candlesticks with a momentum indicator such as Stochastics, or Bollinger Bands as a filter. Thus a reversal candle pattern is only valid if it occurs in overbought/oversold condition on your indicator, or if it is touching (or beyond) the upper/lower band.

[FringFX]

Hello you best people on the internet

Do you have any idea of how I can further filter out false candle signals generated on S/R levels on daily timeframes. I've got no idea and am looking for inspiration.

You have to study the dynamics in using S/R levels (chart time will help). Once you become learned, you will be able to determine with some degree of certainty and forecast when a false candle signal will be generated.

[grudovz]

What type of candle patterns youre using?

the usual, as in Pin Bar, Enguling Bar, Morning and evening Star, Doji (sometimes)

[PATR8der]

Hello you best people on the internet

Do you have any idea of how I can further filter out false candle signals generated on S/R levels on daily timeframes. I've got no idea and am looking for inspiration.

once you are in higher TF like daily or weekly, you are already effectively filtering out the "noise".

[sKratch1989]

and one of the hardest things is to remember that you have to wait for the candlestick to close....

I have so often seen a candlestick pattern and traded it before the close of the pattern, only to find that it reverses and doesn't count as a pattern. -_-

[grudovz]

Read The New Market Wizards it's a very good book all about it

[Entropywins]

Wait....thats the best advice anyone has ever given me....how can you get better at identifying reversals, chart time...how can you get better trades, sit out most of the so called reversals and WAIT until you have more then just lagging indicators and a reversal pattern going for you...watch support and resistance and look for MAJOR pin bars, 2 bar reversals, engulfing...look for them to have momentum (large candle...pin bar with large wick.