# Candlestick Trading



## princeplanet (3 January 2014)

I'm interested to know more. Sites like AussieBulls boast pretty good track records (too good to be true?). Can this stand alone strategy really deliver?


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## peter2 (3 January 2014)

IMO No. Interpreting candlestick patterns is similar to interpreting VSA patterns in that the win rate is no better than random. However if you consider candlestick and VSA patterns within a larger context or market structure then you can improve the win rate considerably. Once you improve the odds of a winning trade then your trade management has a better chance of creating a positive edge. 

I use candlestick reversal patterns as they provide an entry trigger and a logical stop loss. However I wait for a reversal pattern to form at the end of a corrective swing against a larger time frame trend. I also use candlestick continuation patterns and failed reversal patterns to get into strong impulsive swings. 

A knowledge of candlestick patterns (and/or VSA) may help you understand and help you anticipate what might happen next. This is only the first step in formulating a trading plan.


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## Floater (5 January 2014)

Hi 
I am also having a play with the candlestick charting ,
and have purchased books "Japanese candlestick charting techniques" and "beyond candlesticks" both written by Steve Nison.
So far I have made money on my investments (maybe beginners luck) but have also left a lot on the table meaning I have a lot to learn: 
The books are easy to read and understand

Floater


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## Valued (5 January 2014)

To be fair, VSA can be used without candlestick patterns. I.e. you don't need to know what "Bullish engulfing superman butterfly cyclone"* is to analyse volume and track trends. Although there seems to be a push to apply VSA to candlestick patterns though. This is fine but it depends how you want to look at things. 

To me, candlestick patterns are an advanced topic as a way of visualizing supply and demand. I think it's a far greater task to understand supply and demand on a more fundamental level before tackling patterns. I am not sure if people will agree. They might think patterns are an easier shortcut instead of doing an in depth and lengthy study of how markets move.

*I may have made that up.


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## tinhat (5 January 2014)

Valued said:


> "Bullish engulfing superman butterfly cyclone"*




I was trading that pattern in Linc Energy all last year.*

I use them as my default chart type as I think they show the price action the most graphically - especially on a weekly chart.

* I made that up.


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## Valued (5 January 2014)

tinhat said:


> I was trading that pattern in Linc Energy all last year.*
> 
> I use them as my default chart type as I think they show the price action the most graphically - especially on a weekly chart.
> 
> * I made that up.




You clearly missed the Bearish Singapore pattern. That's kind of an important one.


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## burglar (6 January 2014)

Valued said:


> You clearly missed the Bearish Singapore pattern. That's kind of an important one.




Is that the Bollinger Squeeze awaiting for high volume breakdown! lol


http://chartgame.com/

Enjoy!!


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## burglar (6 January 2014)

tinhat said:


> I was trading that pattern in Linc Energy all last year.*
> 
> I use them as my default chart type as I think they show the price action the most graphically - especially on a weekly chart.
> 
> * I made that up.




Hi tinhat,

I did not know you traded patterns!!


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## Ezzo (2 February 2015)

burglar said:


> Is that the Bollinger Squeeze awaiting for high volume breakdown! lol
> 
> 
> http://chartgame.com/
> ...




Thanks for that site


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## tech/a (2 February 2015)

> you don't need to know what "Bullish engulfing superman butterfly cyclone"*




Just saw this ---classic!!!


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## pixel (2 February 2015)

tech/a said:


> > "Bullish engulfing superman butterfly cyclone"
> 
> 
> 
> Just saw this ---classic!!!




Classic indeed 
What a pity that Thomas Bulkowski hasn't yet analysed it long enough to provide some net success rates, like he does for his "Top Ten" at http://thepatternsite.com/CandlePerformers.html

Personally, I use s few selected patterns as auxiliary "warning flags" when a chart reaches a support or resistance zone where I intend to buy or take profit. Generally, I trade within channels or "envelopes"; but if I recognise one of the more reliable patterns - especially particular Dojis or Haramis - then I'm inclined NOT to wait for a break outside the channel, but take profit or at least part profit early.
Works for me, and does the trick on a wide range of periods, from 10 minutes to days or even weeks.


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## kevinric (10 March 2015)

All but all of the robots/Strategies are going to fail some day.
You need to trust only on your self!!!


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## tech/a (10 March 2015)

kevinric said:


> All but all of the robots/Strategies are going to fail some day.
> You need to trust only on your self!!!




If you can out perform robots and strategies and your as capable of handling failure as well as the bots and strategies.

Because you will fail!


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## pettlepop (18 January 2017)

JAT showing very bullish flag pattern, time for a major rally on JAT today
https://www.barchart.com/stocks/quotes/JAT.AX/technical-chart


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