I was just curious what other people have to say about their favorite candle patterns and which works best for them. I personally trade the shooting star pattern (when the market is not trending) as I have had much luck with it compared to other setups. I Was curious If anyone uses any other types of patterns they'd like to share. Feed back always appreciated .
Last edited by Itchymoku; August 28th, 2012 at 01:24 AM.
This post has been selected as an answer to the original posters question
I am not a candlestick pattern guy. I prefer just simple PASR.
If you are a patterns guy, you can check out some of Suri Duddella's webinars on futures.io (formerly BMT) or buy his book which may be helpful, it is a reference of all popular patterns.
I would also recommend the book Evidence Based Technical Analysis by David Aronson to give you a different view.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
If you want to support our community, become an Elite Member.
The following user says Thank You to Big Mike for this post:
To use candle stick patterns, you would need to know the probability that a specific pattern leads to a upward or downward price movement. It is also important to understand the context (trend, range) of each pattern to trade it.
There is a small study available by Thomas Bulkowski, who has evaluated 103 different pattenrs and published the results
The report only shows a few significant patterns, but the result is highly dependant on the trading costs that were assumed. Trading futures may involve lower costs, and some of the patterns might pass the cap.
In any case it is not easy to make money with candlestick patterns alone. Additional filters would be required.
The following 2 users say Thank You to Fat Tails for this post: