best way to use candlestick pattern ...
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    Registered user faridoon's Avatar
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    best way to use candlestick pattern ...

    Hello
    in my today topic ill try to explain in my prospective the importance of candle stick pattern with trading

    i will start the topic with few question that i think any trader will have in his mind about them

    what does candle stick patterns means (to me) ? which one (should) i use more ? how (i think) it should be used ?

    so starting first , candle stick as books say it represent the movement of the price in define period with the price of open high close and low , that's an academical definition if i may say but for a trader it should mean to him for getting information about the selling or buying pressure and to me i don't care much about opening basically whats important in candle stick is the close and the low if its bearish candle or the high if its bullish candle , candle stick can show you also who is the wining side of the bears and the bulls and also can give you an information who might take control in the upcoming movement

    there are many candle stick patterns you can find them in the internet but the patterns i use the most and i think they are the best are , ENGULF candle , PIN BAR candle , so lets see them one by one and what they look like.

    the engulf candle: from its name we get the hint of what it do its a big candle that engulf or it swallow the previous candle or candles in the opposite direction of course meaning if we have a bullish candle the engulf candle will be a bearish candle that open in the same close of the previous candle and close lower then the low of the bullish candle (i hope no one get confused so far xD) it will be clear with the chart so lets see



    the PIN BAR candle : it s a candle formed by a long tail with a small body , now the tail should be no less then 3times longer then the body and the candles i use are only those were they have a square body sometimes i use those with rectangle body but must be almost squared , the information you get from this candle is also that there is a huge resistance or support on that area and the huge pressure , lets see some examples of it

    on 4hours time frame



    on daily time frame



    also the little down or up the body not the one who supposed to be long no the other one it must be so small for example lets say a bearish pin bar the log tail will be up the body and down the body must be a very small tail or no tail

    example eur/usd daily chart



    ps: it work best on bottoms or tops and that only where i use theme meaning when you look left you're chart you will find it kind of empty

    so at the last of my topic i will tell how i use them and how i think it should be used ,
    i know a lot of trader that use a naked chart and only work with candle stick pattern but for me i find it a little bit not enough so i combine them with other technical analysis for example if it comes from a support area it tells me that this a strong area , or when i use harmonic pattern if it shows up that means the pattern its strong and have high chance to work out , ill show you example for both ,

    support area with pinbar & engulf candle



    harmonic pattern:

    shark pattern with engulf candle



    AB=CD pattern with pinbar



    and basically you can use those two candles with the way you use to trade the market

    if you have any question drop it down and ill be glad to answer , i hope this was useful for you , HAPPY TRADING everyone

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    Registered user tfs2012's Avatar
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    You are using the same method used by my mentor who disappeared a long time ago and his name was Rakan he was a great trader he used the same macd indicator too.
    Do you by any chance know the three candles pattern? If you know this pattern it means you know that person for sure :)

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    Registered user faridoon's Avatar
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    Quote Originally Posted by tfs2012 View Post
    You are using the same method used by my mentor who disappeared a long time ago and his name was Rakan he was a great trader he used the same macd indicator too.
    Do you by any chance know the three candles pattern? If you know this pattern it means you know that person for sure :)
    OOOh , i think we can be knowing the same person yes , i know a trader named RAKAN an amazing friend and a great trader we do have have the same methods special when it comes to harmonic trading we trade it a lot together of course he is a way beyond me :p , and i know the three candle pattern so i guess it is the same person ^^

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    I like this method, I use something similar but I did not learn it from the mentor you guys are taking about. I learned mine in a different way. I learned mine from friends and then my practice I did online and then with the demo trading account. That way I know it as price action trading method, the method which is more simple with higher possible profits if used on the higher time frame.

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    Quote Originally Posted by Brain View Post
    I like this method, I use something similar but I did not learn it from the mentor you guys are taking about. I learned mine in a different way. I learned mine from friends and then my practice I did online and then with the demo trading account. That way I know it as price action trading method, the method which is more simple with higher possible profits if used on the higher time frame.
    Yes you are right . This method needs to work long term trades that take a long time on the chart. But this type of trading needs to have high experience in the analysis as well as continuous follow-up on the chart. But this is the best trading in my opinion

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    Registered user faridoon's Avatar
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    Quote Originally Posted by Brain View Post
    I like this method, I use something similar but I did not learn it from the mentor you guys are taking about. I learned mine in a different way. I learned mine from friends and then my practice I did online and then with the demo trading account. That way I know it as price action trading method, the method which is more simple with higher possible profits if used on the higher time frame.
    am glad you like it, and yes price action or candle stick patterns can be used in a different ways but how i highlight in the thread it's better (in my opinion) to use
    them in reversals area or levels where you think you will have a movement maybe even a continuation and this kind of candle confirm that movement

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    Registered user tfs2012's Avatar
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    Quote Originally Posted by Brain View Post
    I like this method, I use something similar but I did not learn it from the mentor you guys are taking about. I learned mine in a different way. I learned mine from friends and then my practice I did online and then with the demo trading account. That way I know it as price action trading method, the method which is more simple with higher possible profits if used on the higher time frame.
    It's all about confirmations. Multiple confirmations give you high probability trades ,sometimes the trade is a 100 percent success without a doubt.
    For example, the GBP/JPY has three harmonic patterns with an engulfing pattern to confirm the start of the bearish move.

    GBPJPYH111.jpg

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    Registered user sniper007's Avatar
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    From my experience because I have made also a trade on candle stick trading strategy. And with the things I have learned and been doing, there are two candle stick pattern that we are to give much respect to so much. They are the use of the pin bar and then the bullish and bearish engulfing patterns. Well, your method is not far from what so many other traders are using.

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    Registered user Batavia's Avatar
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    hi TS this is very interesting so far i don't know about this analysis would you give some advice to use this for step by step because i don't never use this method. so i hope you want to explained to me about this. is it same as to find the level SnR and to put that line on to create picture like that (blue color )

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    Candlestick chart patterns with support and resistance level idea can be more effective. I do not like to trade with indicators. According to my own opinion they are boss to make more false signal. For this I use only candlestick chart patterns with support and resistance. I am getting sound result from its.

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