I’m a newer forex trader and am still tweaking my system after I’ve been having a string of losses.
I like trading the 30 minute charts with the EUR/USD but am wondering how accurate candlesticks are on this time frame. Nison in his book Candlestick Charting says that they can be used in any time frame.
Any suggestions?
Thanks
Yes they can be used on any time frame, but its best you analyze a higher time(daily/4H) then pick entries from the 30m.
i have a problem there… as candlesticks examples are usually shown in interval days therefore there are gap between candles. if i am using it at a low timeframe like 30m i can’t tell what formation is that. unless it is is like hammer or hanging man as there is only 1 candle involve.
That is a problem with many candlestick formations… Some Forex brokers do not display gaps and as such candle formations like dark cloud cover aint visible. My advice, for what it’s worth, is that candles should only be used as additional weight to a more solid theory.
I doubt something simple like sell on a bearish engulfing will yield profits in the long term. Everyone would be doing it. It’s easy! Trading Forex is not easy. If a bearish engulfing pattern, on the other hand, appeared at the top of a elliott 5th wave or a C wave correction or previous support/resistance it would naturally add more weight to your reversal assumption and you could, in the long term, achieve greater success than candles alone (i think :D).
Jay