Quote from judge:
...Has anyone used any continuation (of the trend) candlestick patterns with any success?
Via daily chart
continuation patterns...
Yes.
What do you trade?
What candlestick books do you own?
What candlestick continuation patterns are you currently using?
Please post some chart examples of your experience with continuation candlestick patterns via daily chart analysis.
Ok...here goes...
There are some traders here at EliteTrader that uses daily candlestick patterns to confirm their position size management for their day trades while trading the Eminis via intraday candlestick patterns.
More specifically...their very good with
continuation candlestick patterns via daily chart analysis...
(These guys/gal aren't after a few points if you know what I mean)
helps them decide if they will hold a profitable position overnight or if they should day trade as usual and wait for a breakout or breakdown above particular types of daily chart
continuation patterns...
Note: All the
basic continuation patterns are listed in your usual Japanese Candlestick books...
Further...those successful traders that hold Eminis overnight using daily continuation patterns with intraday analysis...
Aren't going to share unless they think you are putting in the work to learn about candlesticks (hint).
How do I know the above as fact...I've been here for a few years and those traders rarely post here...
when they do...it's not about candlesticks.
Basically...this is how they and I trade via using daily continuation candlestick patterns...
(They have their own daily chart continuation patterns and I use only one particular daily chart continuation pattern)
What the market does on the intraday the following day after the appearence of a daily chart continuation pattern will determine which way to place the initial trade position...
an initial trade position based on intraday reversal patterns only...
Long or Short when opening a new position that's designed for an overnight hold of one to many days.
Also, if they held an overnight profitable position based on daily candlestick analysis...the following trading day...
they'll either be adding to a profitable position via intraday signals or exiting parts of a profitable position if things don't look so hot on the intraday (reducing their risk exposure).
Which ones work the best or is more successful isn't what you really want to know because the success is based on that particular traders trade management (stuff that happens after entry)...
What you want to know is which daily
continuation pattern
tends to set up for a strong price move the following day...allowing a comfortable breathing room...Long or Short...
increasing the odds of catching a big price move regardless for just that intraday or for holding many trading days.
Hint: Study your continuation patterns on the daily chart that have a wide range body (Close > Open...not High > Low) in comparison to the prior 3 daily candlestick bodies...
Next...look for a particular type of candlestick in the following daily candlestick (its a repetitive pattern)
stay in the position until the next same pattern appears or until the next
reversal candlestick pattern appears.
Tip: It's not discussed in any books as a continuation pattern.
Why just a hint via the above instead of providing all the dirty details (chart examples and criterias for trade management)...
Some traders want to only freely share with those that truly have an interest..
sometimes that interest can only be measured by what they share themselves (you) or how they (you) respond in prior conversations on similar topics.
You have only a few posts here at ET...your going to have to show more interest (instead of questions) to smoke out some profitable answers from some of the serious candlestick traders here at ET...
most of which only communicate about daily and intraday candlesticks via private message or email.
I know the above for fact because I communicate with some and they aren't active in posting at EliteTrader.
If your not interested...take a peek at Hotcandlestick.com (they have a free 30 day trial and I have no association with them)
They mix well together daily candlestick analysis with intraday candlestick analysis...
I used it a long time ago to help out some stock traders and to see what Hotcandlestick.com was all about.
I liked the website.
Good luck with the homework via my hint...its a gem.
P.S. Candlestick discussion here at ET aren't that popular.
Interest usually doesn't increase until charts are being posted and when traders are
sharing their candlestick experiences.
NihabaAshi
