Hi,
I’m quite confident I can apply what I’ve learnt to charts now, particularly candlestick patterns found at support and resistance levels.
My question is can I apply the same principles to a 15 minute chart as I would to a 1 or 4 hour chart? Has anyone found certain patterns more reliable at certain time frames?
Thanks
Mike
Its just not that easy. Most patterns become less and less reliable as you reduce the trading time-frame.
Plus, many text-book patterns depend on a closed session for their correct identification and trading tactics. The patterns were originally identified and studied in the stock market using daily charts, so there were very frequent and sometimes very large gaps between one close and the next open. Significant gaps between close and open on shorter time-frame charts are rare.
I have not experienced such a problem.
For example the engulfing candle pattern requires off-set closes and opens. Nobody should be surprised if it doesn’t work particularly well on a chart without closed sessions.
Don’t do it, just follow the average and trade short term like you are probably doing now already. When you’ll acumulate some money there will be much more different strategies overall and all will be solved anyway. How does that sounds to you?