The illlusion of candlestick patterns

[robster970]

I also use candles because they are the prettiest to look at, I'm with you on that one.

Sometimes they are so pretty, they make me cry because I'm an emotional kind of guy. Just a little tear, nothing dramatic.

 

[poborsky]

Yep, you've had it now Pob, mathematics is commin' to get ya! Don't ever think for a minute that it was skill that put you into your winning trades.

At least I will have the satisfaction of being able to start the thread “mystical illusion of the pinbar strategy”.

 

[nunrgguy]

I use candles because they are the prettiest to look at and for a discrete time period, tells me everything I need to know about that period. In isolation they are useless (falling star, rising bear, angry chicken, whatever).

You can model continuous signals discretely and still have a fair representation of what's going on. This is the whole basis for digital signal processing which pervades practically every aspect of our lives, TV, CD's, Internetz, etc

What is in question is the interpreter of this discrete information and if you, the trader are a rubbish interpreter of the discrete information that is presented then it's going to come out all garbled and meaningless. A bit like if you were a really cr@p cd player - would you blame the CD for the sound quality even though it's able to provide discrete information at 384kb/s?

Do you sing to the main tune of the song or spend your time listening to stuff up at 20kHz?

You'd be surprised. I was a record producer in another life and my ears are shot

 

[Shakone]

Yeah I understand Vituoso. But I believe that if you go to 43 min charts, they will have less meaning just by the sheer fact that a bunch of people are watching the hourly, but not many are watching the 43 min chart. Every level or setup on my chart is what I think a group of people will enter on, or what I think a group of people will panic about. As far as I can see it, trading to me is about taking advantage of others trades and what they see and do. If the majority are watching the hourly chart then I need to watch that too. I don't think this is unreasonable. So even 1 hour candles have relevance, although I prefer the daily. I actually use bar charts. I use them because I consider the highs and lows more important to me, and candles emphasise the body. Candles are prettier though

 

[sebby2468]

Candelstick patterns do work,but i use them to stay in a trade not to enter,good, strong s&r levels is what i look for, R-R for me on any trade is an initial 3-1 but if it turns into a daily pin or outside bar then i will let a portion run,with good mm these trades can make you stacks as the pressure is off.

 

[TAjammy]

ive recently been using line charts, ive been told you can spot the general movement a lot easier, it's less choppy, and S/R are easier to spot.

this is true!

 

[montmorencyt2w]

I use candles because they are the prettiest to look at and for a discrete time period, tells me everything I need to know about that period. In isolation they are useless (falling star, rising bear, angry chicken, whatever).

Ah you've discovered the Angry Chicken pattern too have you? It's a good one that is; almost as good as the fluttering duck and the graceful swan.