pls am confuse somewhere, if a “Hammer candlestick” is found or form in an uptrend will i still trade that same uptrend??? and if an “Hanging man candlestick” is found or form in a downtrend can i still go ahead to trade the market with that same downtrend?? pls can someone help me out
over-rated, just my opinion, and you definitely dont take a trade by just a formation. Its just a clue and has a 50-50 chance to move either way. They are misleading, at least to me.
There’s a full section about this in the babypips school. have a look there.
These kinds of candlesticks must be acted upon along with other information such as S/R lines, trends etc.
There are some really good threads on the forum with some good examples if you’re struggling to understand them.
Good luck.
Shy.
HI bb2b, I agree with MoneyNvrSleeps and ShyFX:
read the BabyPips School on BabyPips and be aware that no one candlestick or candlestick group is fool-proof!
Watch this video from 11’10’’; it is Ilya Spivak of DailyFX.com, talking about candlesticks (and technical analysis)
at FXCM Expo 2011… YouTube
He says: 'Candlesticks are not any magical formula (…) they are price itself (…)". He goes on to say:
“Rather than getting stuck in the definition (…) think of the actual push and pull and mood of the market (…) ultimately, whether it is called morning star, or evening star, or morning crescent, it doesn’t matter”.
So do not get obsessed with shapes of candles etc. but try to wait for confirmation of what they are saying about buyers versus sellers etc.
Also, while candles work on all time-frames, the higher time-frame you go on to for candlestick analysis, the more powerful they are in giving signals, to some extent… the age-old argument of ‘noise’ in the lower time-frames does make some sense in this case… (that is a huge discussion with many views, so I will leave that one for now)!!
Happy viewing!
bb2be,
Please make yourself a favor if you like the candlesticks as I do and follow the advice of the fellow traders above. After graduating from School Of Pipsology get acquainted with Mr Steve Nison and his books and then … #tradesafely
Candlestick(price action) is something that will help you trade better at the later stage of your trading . Not very helpful at the early stage of trading though .