Do candles work?

[Chartsy]

check out 'oztrader' on youtube.candlestick patterns have been done to death. Ever since i implemented candlesticks to my method (short term trend trading) i've went from consistently unprofitable to just over breakeven in 6 weeks,just off eurusd. not bad since i'm off h4. I recently just closed a 300 pip eurusd swing trade which got 3.5 times my risk.

 

[forker]

I don't buy into candles. I don't think they have any relevance to where price is going. If you think about it, a candle can be distorted in it's interpretation. How can interpretation of price be subject to time based representations of the market. Focus your attention to all the failed candles, as their interpretation suggests, you have to ask yourself how can they represent a probability.

There are those that say the probability facets manifest in particular locations. If that were the case, then how can the significant failed candles be explained. If the underlying interpretation of the candle is based on a market condition that is an imbalance of buyers and sellers, then what remains of those that don't?

I personally believe candles are skewed by time. How Institutions deal relative to time can paint a candle in several forms.

 

[Jumpinjack]

I don't buy into candles. I don't think they have any relevance to where price is going. If you think about it, a candle can be distorted in it's interpretation. How can interpretation of price be subject to time based representations of the market. Focus your attention to all the failed candles, as their interpretation suggests, you have to ask yourself how can they represent a probability.


For this reason alone you have to have accurate O/H/L/C...
Use a chart package not from a broker!
Candlesticks are deceptive. They are based on Japanese tactics of war!
Got to have a context within price action.

check out Teletrader charts
see also www.chart-workshop.de

 

[B0B0]

Am I right in thinking a successful trading strategy might entail flipping a coin? So long as the appropriate stops are in place?

edit: hi

 

[shadowninja]

Coinflipping strategies have been debated since someone first thought up the idea of creating a stock market.

 

[B0B0]

It would appear they have. The logic seems pretty sound tbh.

 

[ezreddy]

Am I right in thinking a successful trading strategy might entail flipping a coin? So long as the appropriate stops are in place?

edit: hi

Heads says you are right and tails says you are wrong.

 

[timsk]

Heads says you are right and tails says you are wrong.

I've just flipped a coin and it's come up tails . . .

 

[Tradekingfox]

I am new to the world of candlesticks and recently started to read about them. I completed a back-test on Doji as a trend-reversal signal. The results are located at:

http://blog.kilotrader.com/2010/05/do-candlestick-patterns-work.html

And they are NOT impressive

What did I do wrong here? Do candlestick signals work?

Yes they do with combinations with other signals,and understanding how to read them all together as one.I would say single day candlestick or even better few days candlestick pattern with volume of the day vs 90 days volume avg. one of the best signals that work for me so far.

 

[jonander50]

Candlesticks sometimes works better than western system. Anyway is fine to combine both methods.

 

[TheBramble]

It's the same fuggin data! A doji looks the same in both 'systems'. Really, you can pull up an OHLC bar chart and call the setups equally exotic foofar names. It's exactly the same price action on both. Don't get hung up on form...

 

[intradaybill]

http://www.westga.edu/~bquest/2008/candlestick08.pdf

 

[Bint_Crusher]

People work, candles don't

 

[jonander50]

Because of they retirement, lol.

 

[kbit]

This thread is about a year old now ...do candles work or not ? ha ha ha
They do indeed work...like every thing else though it's not a 100% sucess rate.
LOCATION and probabilities are the key, works for me

 

[Bint_Crusher]

All a candle is, is a price range for a given period of time.

 

[Jumpinjack]

All a candle is, is a price range for a given period of time.

No-- a candle gives you light!

A Japanese candlestick gives you the H/L/O/C = sentiment for that given range of price history! What has happened may refelect what will happen!

 

[treetop]

All a candle is, is a price range for a given period of time.

No-- a candle gives you light!

A Japanese candlestick gives you the H/L/O/C = sentiment for that given range of price history! What has happened may refelect what will happen!

Why not use a candle as support and resistance. By price reaching the mid point of the previous candle body you have price direction. Just split the candles, any candle, doji, hammer and trade the direction. Trade oil

 

[Bint_Crusher]

All a candle is, is a price range for a given period of time.

No-- a candle gives you light!

A Japanese candlestick gives you the H/L/O/C = sentiment for that given range of price history! What has happened may refelect what will happen!

Classic candles also give you a whole lot more than that.

http://www.vibratorsworld.com/2462vibrator.htm

 

[Ambrose Ackroyd]

I wasn't aware that they were supposed to work ( or not ).

Candles are just one of a number of alternatives for representing price.

I like using them because they are easy on the eye but other people prefer plain old bar charts.

Don't know if they work !!!!!!!

I think that what works ( or not ) is the person using these pictorial representations of price.