The correlation was high some years ago. They worked reasonably well for some time. After QE and Fed driving asset prices up non-stop, with BTD ruling price action, and options dealers hedging after meme stocks and 0DTE, those candles have fainted.
Tell me some candlestick patterns and their forecasts
- Thread starter Alexis_0
- Start date
The correlation was high some years ago. They worked reasonably well for some time. After QE and Fed driving asset prices up non-stop, with BTD ruling price action, and options dealers hedging after meme stocks and 0DTE, those candles have fainted.
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Good + good year .
Trends with candle charts still work well as long as you dont trade all the profit away with bid \ask slippage\ panic sells\ stupid stuff
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In my opinion...
They do so, because they probably were a floor trader in the past. If that is the case, then they truly understand what a candle formation means, because they probably can imagine being on the floor.
Everyone else is guessing, of which few are lucky/guessed correctly.
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LOL/NO wonder;
why disclose a position with a terrible risk reward
ITS NOT about prediction;
until one learns the big difference between weather forecast + weather prediction ,its like lunch meat for a lion LOL
IF you want a cram course in reality;
get yourself a workin' man's PHD/Aaron T . Workin' Man's PHD> 5,077,777 video views
Its a bull market you know, most candles going up, as of YESterdays close anyway-so as you noted that is ''hindsight ''LOL
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What is the basis for candlestick patterns to work in your view? If we shift start of the candle for even 1 sec we can get completely different candles
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10%? Congrats on your optimist view LOL
Some that can translate data into candlecharts could find a use for 12%+/ failure rate;
{12% failure} + 88% JAN barometer. Stock Traders Almanac by Hirsch.
NOT a prediction LOL ;
but good reasons they don't call weather forecast ''weather prediction''
Candlesticks summarise the highlights of price action in the selected period. This summary makes it practical for the trader to set rational, objective and repeatable patterns of behaviour. Certain candlestick patterns indicate a future price direction which is more probably in one direction than the other.
Of course the future relevance of the price action summarised by a single candlestick is limited. But candlesticks are equally valuable in predicting what the trader will do as in predicting what the market will do.
I believe the point was that if you offset the bar generation even by one second, you get different candlestick patterns, so it doesn't sound like a good source for analysis.. e.g. you may get shooting star or hammer patterns with one offset and they vanish in another offset. Someone in the forums did this and it was kind of interesting. But you could also argue that if enough people do trading based on the candle stick patterns with the default 0-offset, then it is kind of self-fulfilling prophecy
The choice of time-frame from which to get a candlestick pattern which means something is drawn from the trader's strategy. The strategy uses a pattern which has a higher probability of a certain subsequent price action. Like all price charts, candlesticks are a diagram, not a prediction: they illustrate what the trader will do, they're not a map showing what the markets will do.I believe the point was that if you offset the bar generation even by one second, you get different candlestick patterns, so it doesn't sound like a good source for analysis.. e.g. you may get shooting star or hammer patterns with one offset and they vanish in another offset. Someone in the forums did this and it was kind of interesting. But you could also argue that if enough people do trading based on the candle stick patterns with the default 0-offset, then it is kind of self-fulfilling prophecy
I guess the argument goes, that if the pattern is subject to changes by simply adjusting the offset (not time-frame), what kind of predictive power it can have.