Most recommended book on candlestick charts?

[Saltynuts]

I've been watching the candlestick charts for SPY on my IB screen for several days now, generally at the one minute level. I've noticed a little pattern where you'll have a price going one way for several sticks, say up for example, then you will have like 3 wicks on the upside where it couldn't quite push higher, then the price will seemingly more often than not retreat a good bit.

Anyways, that is a long way of saying I would like to read up on the best ways to use them, things to look for, set ups, etc. Thanks!

 

[tommcginnis]

I've been watching the candlestick charts for SPY on my IB screen for several days now, generally at the one minute level. I've noticed a little pattern...

You've just done what is needed: you sat and watched.

Sit and watch some more. Don't think about names/labels, don't try to carry the contradictory inferences that *will* come from book after book. Think. *Predict*. Test whether prediction after prediction comes to pass as expected, or not. Have a coin nearby, to flip for a 50|50 standard (and so, to set a minimum of 50% correctness). When do things work as expected? When do they not? Is there a discernible, systematic difference between the two?

One of my favorite movie lines:
"I've got to science the shit out of this."

FWIW, you've started 54 threads, seeking mostly information that requires sitting and watching, or googling. For an IB trader who has been trading for years, that's kinda curious.

 

[Scataphagos]

I bought Nison's book years ago. Let me save you some trouble.

1. Candle patterns are most reliable on daily charts. The shorter the time frame, the less reliable they are.

2. Patterns are useful only at potential big highs, potential big lows, trading range extremes.... and only the "reversal patterns" like Morning Star and Evening Star... maybe Hanging Man, Shooting Star/Hammer, Engulfing.

Not as much value to candle patterns as most hope.

 

[Saltynuts]

You've just done what is needed: you sat and watched.

Sit and watch some more. Don't think about names/labels, don't try to carry the contradictory inferences that *will* come from book after book. Think. *Predict*. Test whether prediction after prediction comes to pass as expected, or not. Have a coin nearby, to flip for a 50|50 standard (and so, to set a minimum of 50% correctness). When do things work as expected? When do they not? Is there a discernible, systematic difference between the two?

One of my favorite movie lines:
"I've got to science the shit out of this."

FWIW, you've started 54 threads, seeking mostly information that requires sitting and watching, or googling. For an IB trader who has been trading for years, that's kinda curious.

Thanks Tommy! On that last part, I've had an IB account for years, but never been a trader. I place orders in the markets from time to time, but its really an "investment" account. Thanks!

 

[Saltynuts]

I bought Nison's book years ago. Let me save you some trouble.

1. Candle patterns are most reliable on daily charts. The shorter the time frame, the less reliable they are.

2. Patterns are useful only at potential big highs, potential big lows, trading range extremes.... and only the "reversal patterns" like Morning Star and Evening Star... maybe Hanging Man, Shooting Star/Hammer, Engulfing.

Not as much value to candle patterns as most hope.

Much appreciated Scataphoagos.

 

[ballstaranonymous]

You've just done what is needed: you sat and watched.

Sit and watch some more. Don't think about names/labels, don't try to carry the contradictory inferences that *will* come from book after book. Think. *Predict*. Test whether prediction after prediction comes to pass as expected, or not. Have a coin nearby, to flip for a 50|50 standard (and so, to set a minimum of 50% correctness). When do things work as expected? When do they not? Is there a discernible, systematic difference between the two?

One of my favorite movie lines:
"I've got to science the shit out of this."

FWIW, you've started 54 threads, seeking mostly information that requires sitting and watching, or googling. For an IB trader who has been trading for years, that's kinda curious.

Call him Dave. He's trying to create ad revenue for the long haired rube that owns this site. Losers, right?