Another view in understanding more about Candlestick patterns / Chart patterns - Page 3

# Thread: Another view in understanding more about Candlestick patterns / Chart patterns

1. ## Another view in understanding more about Candlestick patterns / Chart patterns

Hello guys, today I made this article relating to candlestick patterns / chart patterns. I took this topic based on my personal observations.

As we know there are tons of candlestick patterns and chart patterns, we can find lots of articles related to this on the internet. Here I will not discuss candlestick patterns and chart patterns in general, because maybe you already know about it, and also you can find it in another articles, or on Google.

Here I will talk about how to understanding candlesticks even further, certainly based on personal observation. So if you have your own view of candlestick / chart patterns, please share here.

Example:

My observation of engulfing candlestick patterns, if we double the time frame, then engulfing candlesticks will become a pinbar.

From the image above, bullish engulfing on H1 will be a bullish pinbar/ hammer on H2.
This will also apply to other time frames, for example .... engulfing on M15 is pinbar on M30.

Conclusion:
A engulfing is a pinbar if we double the time frame. But the a pinbar is not always a engulfing if we divide the time frame.
Example : engulfing on H1 is a pinbar on H2, but a pinbar on H1 is not always a engulfing on M30.

Benefits:
If you find a pinbar (near support / resistance), then you can check at a lower time frame (time frame divided by 2). If it is engulfing, then it is a good signal to enter the market.
Example : If you find a bullish pinbar on H1 (near support/resistance), you check on M30, if you see a bullish engulfing on M30, then it's a good signal to open buy. This is just like a double confirmation signals.

Okay, that's only one of my observation, if you have your own observation related to candlesticks and charts, please share here.

I try not to leave this thread and will be updated every time as long as I have free time.

Best of luck, have a nice day, happy trading, and so on and so forth

2. Originally Posted by Sascha
i use multiple time frames always because that's how i got my conclusion of analysis which coming from different time frames. i won't do any trade when i can't find any explanation from one or more time frames that's not supporting my strategy. for some traders this looks so tiring to do and i admit it is. but since i always willing to do anything necessary then i don't mind to get tired all the time because of analyzing market since it's my job as a forex trader.
There are lot of advantages when you consult different time frames just as you have said, it helps a trader to hold a position for quite long period of times most especially when higher time frames are in support of that . There are some time frames available on c-trader platform which are not on metatrader4 and if a trader can just take advantage of 6 hourly and 12 hourly charts , it will help him take better trade decision because it will offer deeper view about candlestick and chart patterns

3. Originally Posted by layigold
There are lot of advantages when you consult different time frames just as you have said, it helps a trader to hold a position for quite long period of times most especially when higher time frames are in support of that . There are some time frames available on c-trader platform which are not on metatrader4 and if a trader can just take advantage of 6 hourly and 12 hourly charts , it will help him take better trade decision because it will offer deeper view about candlestick and chart patterns
For sure, however before the trader can do that, the trader should be able to also follow the higher time frame in that regards, because analysis on one time frame is not complete at all, so it is needed that the trader should always make use of the different time frame to see the different patterns the candlestick has formed and then know if they can bank on that.

4. Originally Posted by cutiekc
For sure, however before the trader can do that, the trader should be able to also follow the higher time frame in that regards, because analysis on one time frame is not complete at all, so it is needed that the trader should always make use of the different time frame to see the different patterns the candlestick has formed and then know if they can bank on that.
it depends on how high the time frames you're currently using now. traders who analyze market with candlestick patterns by using daily time frame should get enough accuracy and i think they don't have to change to different time frame because many traders proved that daily chart is good for them. changing to bigger time frame to weekly and monthly seems not efficient to help us find our entry point with candlestick patterns because we'll be missing a lot of trades in lower frame.