Tell me some candlestick patterns and their forecasts

[Slope Trader]

The context at the time the candle forms is certainly important. Having trend direction and momentum extremes on one's side seems to help.

My testing has found that hammers and "bullish or bearish hammer-type" candles work well in the right context. The latter are candles that may not quite fit the traditional hammer definition but look and behave similarly. (other than these, am not a candle expert or enthusiast)

Here is the HOOD chart that was shown earlier with a way of looking at context...

 

[TrAndy2022]

What I can say for sure is that anything below daily candles as timeframe is garbage and has no predictive power. If you want to examine candlesticks I would first go with monthly and weekly candles. Then take a look on Out-of-sample performances. Any edge might be slightly only I strongly guess from my own testing. But if you take a large sample of individual stocks you may get some different results (maybe). From my understanding the gaps between candles has the strongest influence, like as breakaway gaps or exhaustion gaps. So I would guess that you take a larger portion of your time for analyzing gaps here. This can be useful, especially for the breakaway gaps on daily timeframe, which also works on SPY and QQQ, but long-only.

 

[heispark]

It is seen that expert traders can predict the price of the market by looking at the candlesticks. How they do so?

I will do you a favor. Learn from Chris Lori. Alternatively, learn from this guy in forexfactory: https://www.forexfactory.com/stevepatt
He learned from Chris Lori and he posts live trading calls. It will change your view to the trading for good.....

 

[HawaiianIceberg]

ImBut 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 believe this is why they work. I enjoyed the offset candlestick post by Adam Grimes enough to write up the code in Tradestation to look myself. Anyone that’s interested can PM me for it

 

[Jzwu2017]

If you stare at candles long enough you’ll get a feel of how one candle will move pretty well. That’s a small edge that quick scalpers are using.

Nothing new here. The point is no 2 candles are alike. Whatever experts say about candles is just probability.

 

[Andrew_0]

It is seen that expert traders can predict the price of the market by looking at the candlesticks. How they do so?

For example, after hammer candle the market goes down mostly and there are many other similar techniques that you have to find out yourself because no one is going to share it with you.

 

[semperfrosty]

I read Nissan's book years ago. IMV, candles work best at "potential reversal" points rather than "continuation". However they are not exclusively revealing. The same info can be gleaned from other disciplines.

The most revealing candle patterns in my view are... Shooting Star, Hanging Man, Hammer, Morning Star, Evening Star, Gravestone Doji (maybe), and "multiple stars near potential tops/bottoms"*.

*Such patterns have been among the best reversal patterns. They infer strong indecision about continuation of recent trend... and therefore likely reversal. These don't occur often, but IMV they are the best-of-the best trade indications... and when you see them on the daily chart you should pounce!

(You can thank** me later for the Lambo you will soon be able to afford for following this advice. )

** Actually you don't have to thank me at all. If so inclined, just donate a few $$ to some no-kill animal shelter near you. If you don't have one, you can donate to my fav.. The Max Fund.. Denver Colorado. (The Max Fund was started years ago by a veterinarian who picked up a poor dog on the side of a road. Max Fund is swamped. Many people who took in "companion animals" during the Covid lockdowns dumped them after restrictions were lifted. Some people couldn't stand the thought of having their former pets put down, so they dumped them wherever they could. Max Fund is one of those places.)

Anecdotal life advice:You can always trust an animal lover.

 

[Jaagup]

Ah, candlestick patterns are like the secret code of the trading world. Expert traders use candlestick patterns to predict price movements by studying the shapes and patterns these candles make on their charts. Each candle tells a little story about what happened during a specific time frame, like 15 minutes or a day.
For example, if you see a "bullish" candlestick pattern, where the closing price is higher than the opening price, it suggests that buyers are in control, and the price might go up. On the flip side, a "bearish" pattern with the closing price below the opening price hints at a potential price drop, as sellers seem to be winning the game.
But here's the trick – it's not just about one candle; it's about looking at a series of them and spotting patterns that repeat. Things like "doji" (when the opening and closing prices are almost the same) or "engulfing" patterns (one candle completely engulfs the previous one) can give clues about market sentiment.
So, expert traders combine these candlestick patterns with other indicators and their experience to make predictions. It's like reading the tea leaves of the financial world – not foolproof, but it can give you a good idea of what might happen next.

 

[oraclewizard77]

Silver pin indicators a top or bottom when it forms at Pivot resistance or Support levels.

 

[ForexCrusader]

Experts often use a combination of technical analysis and candlestick patterns to predict market movements. For more advanced analysis, you might explore harmonic patterns, which are intricate formations that can signal upcoming price movements.


Maybe this reference can help you understand the different types of harmonic patterns:https://insights.primecodex.com/harmonic-patterns/