Hello,
Once price has reached a key structure/S+R on the 1D timeframe, what would be best?
- Wait for a reversal candlestick/pattern on the daily
2)Look at reversal candlestick/patterns on the 4H?
I’m not convinced any individual candlestick formats or multi-candlestick patterns have as much relevance to forex as people think. All the major research and statistical analysis on candlestick patterns was done on stocks, which have a trading session followed by an overnight closed period. So breaking stock price action up into daily periods makes sense.
But in forex, between Monday and Friday, price never stops and even the daily time-frame is therefore random. You might as well use a 23hr bar or a 25hr bar or a 17hr 53mins bar.
That said, I do respect the daily high and low prices in forex, they can mean something useful.
How about the fact that so many traders and analysts do think formations and patterns mean something, and they trade on that logic. Wouldn’t that mean there is some relevance?
Yes, many traders do believe in these things applied to forex. But most traders are losing money, its about 75-80% at any one time according to UK and EU-registered brokers.
For so many to be running losing accounts, there must be some common features to the way they trade. Since most trade using TA, I’d say its a safe bet that their use of TA is a large factor in their failure.