Here is why I think candlestick patterns have no value: with example

This is a discussion on Here is why I think candlestick patterns have no value: with example within the Technical Analysis forums, part of the Methods category; The more confirmation one needs, the greater the risk he assumes: price risk vs information risk. As to the anticipation, ...

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Old Nov 2, 2016, 11:50pm   #9
 
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The more confirmation one needs, the greater the risk he assumes: price risk vs information risk.

As to the anticipation, yesterday's low was 4718.75. Price then rallied to 4768.50. That is the range in which we found ourselves this morning. So one waits until price reaches one side or the other and trades the reversal (which is a large part of what auction market theory is about). It isn't so much about "technicals" as about behavior: buyers were eager to reverse price at 4718.75 yesterday but declined to pay the ask at 4768.50. They may or may not repeat the same behaviors today. If they do, the alert trader is ready to act on that information. If they don't, he does nothing.
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Old Nov 2, 2016, 11:58pm   #10
 
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Yes and yes. I was just trying to suggest that valid information can be gleaned from the bars/candlesticks and that they are not entirely useless.
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Old Nov 3, 2016, 12:06am   #11
 
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They're useless in terms of trading price. But they may be useful in some way for those who are trading bars and candles.
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Old Nov 3, 2016, 12:09am   #12
 
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Quote:
Originally Posted by dbphoenix View Post
They're useless in terms of trading price. But they may be useful in some way for those who are trading bars and candles.
Well, everyone is trading price in the end but I see what you mean
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Old Nov 3, 2016, 12:17am   #13
 
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Actually the only people I know here who are trading price are Gringo and Kleft. Everyone else trades bars, candles, indicators, patterns, "feelings" and so forth. All of which is fine if they're making money. I wrote the Trading Price thread (see below) for those who aren't and are looking for a reset.
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Old Nov 3, 2016, 12:45am   #14
 
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Mmm, I think you trade price as defined by the sort of analysis you do and others trade price by the sort of analysis they do. You look for trading opportunities at places identified by your analysis, they at places identified by theirs.

If all make money that's fine even though yours may well be the one that displays a deeper understanding of the action of the market. There are several ways to skin a cat as a read of Market Wizards illustrates.
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Old Nov 3, 2016, 12:54am   #15
 
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If you know someone who trades price without using any of the aids I mentioned, I look forward to learning who they are. It's always helpful to compare notes.
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Old Nov 3, 2016, 6:51am   #16
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If you know someone who trades price without using any of the aids I mentioned, I look forward to learning who they are. It's always helpful to compare notes.
Is it? The more I compare notes with others, the more uncertain I become. I am reading less and less about what others do as I go along. Most of it is opinionated, including mine.
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