Placing a Trade & Candle Wicks

Beginner Questions
1

Hi!

I am wondering if you guys would place a trade if the candles displays many long wicks?

My strategy is “supply” and “demand” on the 5 minute timeframe.

Thanks!
Michael

2

This is a super difficult question to answer as entering a trade depends on lots more variables than just candles.

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3

Long wicks basically indicate price rejection.

If there are long upper wicks, for example, in principle that interests me in a potential short entry. But whether I would actually place a trade, as Pauley said, depends on a lot more variables than just that.

You must mean “support and resistance,” I think?

(Spot forex does not have “supply” or “demand” - it matters, to you!)

Well, that’s what wicks are about.

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4

Personally, I wouldn’t put my faith on candlesticks patterns especially on entry. I think the context of the market is much more important than just candlesticks. But still, candlesticks pattern does has its purpose though but mainly for information only.

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5

Hmmm. :thinking: I have to agree with Pauley. :open_mouth: Candlestick patterns aren’t really the most reliable, especially on their own. Are you using any other indicator with them? :thinking:

6

Indicator: EMA 200

7

I find pin bars and morning/evening stars much more reliable than they’re “supposed to be.”

Hikkake after failed Harami is very good to me, also.

But generally I agree with you.

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8

I might need to refresh my memory of patterns because I had to look these up. :sweat_smile:

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9

i don’t really disagree - but you could improve them quite a bit, maybe, just with a single moving average: look only for long entries when whole price bars are above a rising 30-bar EMA and only for short entries when whole price bars are below a falling 30-bar EMA? something like that, maybe??

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