So Ive done the school of pipsology and read Steve Nisons ‘Candlesticks’ - I thought I was made!
I’ve started demo trading FX and found that candle signals e.g. hammers, hanging men, shooting stars, dojis, engulfing, etc. etc are alll over the shop! Very messy indeed! I am dissapointed!
I’m now looking into Ichimuko and other types of indicators and oscillators.
Hope the penny drops soon!
Candlesticks are not meant to be used alone. No indicator is.
Personally, I use candle sticks along with S/R and divergences in stochs.
You should also take note of timeframe. Candlestick patterns won’t be as accurate on a 1minute chart as they may be on a daily chart. Of course just like MedicalChew said, candlesticks alone are not the best factor for trade decisions although they are certainly better than using an indicator only approach.
Ive read the book and keep in mind the patterns don’t necessarily take form and direction RIGHT after they form. Consider candlestick patterns a precursor to what COULD happen.