So i am curious about candlesticks. When i first started to watch charts i looked at the 1hr chart. However due to my work schedule i have switched over to 4hr and 1 day charts. My question is if candlestickes are just as effective in longer term periods as shorter ones? For some reason i was led to believe candlestick formations are best analyzed at the 1hr and under period.
They are really up to you to decide. I personally like the day and 4 hours charts.
I have known about candlesticks throughout my share trading but have only now realized their power and started to learn about them in detail.
I have basically dumped the use of indicators as they have at best, a reliability of less than 50%. Sometimes guessing is superior! I was making losses using indicators. After switching to candlesticks my trading improved markedly, I started to make money and i had a smile on my face.
I am taught by the books i have, the experts on this forum, and the experts on the internet generally that :
The [U]shorter [/U]the timeframe, the [U]less [/U]reliable the candlesticks become.
Therefore :
A daily chart is more reliable than a 1 hour chart.
And a 1 hour chart is more reliable than a 5 minute chart.
I dread the thought of using a 1 minute candlestick chart! :eek: :eek:
Regards, Tymen Wortel, Perth, Western Australia.
THx. Tymen can you reccomend any online reading that will go into a little more detail on candlesticks and the many different types?
In addition to Bazooko’s recomendation, here is a hyperlink :
Japanese Candlestick Charting Explained
Regards, Tymen Wortel, Perth, Western Australia.
wouldn’t candle stick indicators be good only in the very long time frame?
Not so. I am using candlesticks with excellent success in the time frames ranging from 20 minutes thro to 1 hour. I am looking carefully for a 2 candle pattern and when i see it on the Bolinger band, I trade on the 3rd candle and wow! - success! 
I am sure that there are many people who are far more experienced than i am and they could testify even better as to the successful use of these time frames.
Regards, Tymen Wortel, Perth, Western Australia.
I use candles as confirmation signals on hourly charts. However, when you think about it, candles are heavily focussed on the open and close of the session. So on Forex the only authentic time frame is weekly cos it’s the only one with a true open and close.
Hi, the various time frames for candlesticks are all valuable depending on how you are going to play the market. i never use anything less than 10 minutes if i am scalping the market.
To get the trend of the currency, I use the 1 day and 4 hour so that I always will trade with the trend. Remember the trend is your friend till it bends.
Jim