Are candlesticks really reliable for live trading, and how do I use the candlestick and assign take profit or take loss that can be profitable?
Completely agree with this
It can be done but it demands a high level of skill. Search out Youtube clips by Al Brooks. he’s a master at interpreting short time-frame price action using candlesticks. He’s very perceptive and the way he works is complex - many traders just can’t follow what he’s doing in real time.
Alan Farley is also worth looking at. He has mainly worked on the daily time-frame. His books are excellent but again very hard to understand.
2 Likes
Candlesticks by themselves…no.
But using them along with support and resistance, reading what price action is doing, and being patient. Then yes they can be but nothing is ever guaranteed so like @Johnscott31 said. We have to acknowledge that we truly don’t know which way the market is going.
But wait on good high probability setups. And please use proper risk management.
1 Like
It depends on some factors such as horizontal support/resistance, trendline’s support/resistance, high impact news events. The price after making a move towards a direction, it consolidates or makes correction. If it produces a strong reversal candle towards the existent trend, it is more likely to continue.
Discovered Alan Farley via Investopedia, didn’t realize he has books! Been following him on Twitter, he seems grumpy there lol.
You can’t predict the next candle. Even if your edge says buy, the next candle could sell even it the market might eventually buy. Focus on your strategy edge and not what the next candle would do
1 Like
Price action analysis, where you are trading based on the look of a candle can be misleading. The better approach would be to use indicators in your technical analysis. If you are trading with a trend, I recommend that you use a price crossover strategy.
1 Like
Thanks for the link. I find that his analysis is very in-depth, those patterns take weeks to develop, I doubt that anyone here can wait that long, and get it “right”
I did find a pattern or signal that was attributed to Al Brooks, which I find much easier to recognize and implement a trading plan with its use, on all timeframes.
It’s called 4-Bar Fractal, not sure why, it is not the typical definition of a fractal with candles on either side. You can Google for the source or I can provide a link or 2 if there is interest.
Nonetheless, there seems to be a reversal signal on the EURUSD today; make of it what you will.
1 Like
trade before australia close session and europe open and us open and like others before 10 minute till london close. the market cant manipulate easily in those time.
1 Like
I’ve been trading for a couple of months, but I haven’t learned how to do it…
Another down day, sell signal for EURUSD. The problem is, USD is undecided if it is strong or weak, check the other major cross pairs. Perhaps NFP will help it decide on the direction, we can only HOPE, # 1 of most trading plans 
1 Like
I hope it continues down lol. I got a sell going on this.
1 Like
I am also hoping for the same! 
Unfortunately, no one can predict it. You just have to prepare for the worst case scenario and be sure you have a clear exit plan.
Candle prediction is just similar to any other option to predict the price movement. Everything is going round the trend movement and its reversals. There are lots of patterns/figures/instruments which can somehow tell you about trend movement. Remember that when you see a bearish trend on your work timeframe like 5M, you must check that the bearish trend is also on higher timeframes, like 1H-4H. If there is no bearish trend, but there is a bullish trend or flat then you must do the same on your work timeframe. Learn various strategies or create your own one which consist of combination of various patterns.
1 Like
