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

  1. #1
    Registered user ara's Avatar
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    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

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  2. #2
    Rookie Sascha's Avatar
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    this is another example on how we look candlestick bars on different time frame. to me that example is similar to bullish engulfing instead of pin bar because the first candle body is smaller than the second one. from second higher candle bar, we can also see market is trying to go up to prepare bullish movement so we can confirm it from previous bar that bullish movement is valid and possibly happening in near time.

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    Registered user ara's Avatar
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    Three inside up and Three inside down

    In the previous post above I've talked about engulfing candles related to the pinbar to be used as double confirmation signals on two different time frames.
    This time I will talk about Three inside up and Three inside down which is also related to the pinbar that can be used to double confirmation signals in two different time frames.



    If we combine a three inside up or three inside down into one candle, then it will be a pinbar candle. For example, we find a three inside up candlestick pattern on H1 time frames, it will be a pinbar if we switch it on the H3 time frame.



    Tips for double confirmation signals:
    Suppose we find a bullish Pinbar candle near support on the M15 time frame, then we check the M5 time frame. If it is a Three inside up, then we can open long position (buy).

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    Trader cutiekc's Avatar
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    This is just a new trading knowledge I am getting to know about I have never learned this. But then, I think what matters is actually the time frame, because time frame gives quality to the candle stick pattern. On the other hand, on pin bar, when the wick is more longer and the body is little then it has more probability in making the market move.

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    Rookie Yayami's Avatar
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    a good startup kit for beginners to learn what's the definition of candlestick in a nutshell. so far for traders who already been more than a year this is a good reminder, a fresh basic explanation to regenerate our memory of the knowledge of candlestick. i want to say that pin bar pattern is a common one which takes all the candle bar that has long tail or shadow with small body like hammer.

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    Rookie Doge's Avatar
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    Candlestick patterns are relatively well systematized in Steve Nison's books, although his graphic examples are shite.
    A most rarely mentioned quality that candlestick patterns should have is they should contrast to the other candles around. A Harami is not just any bigger and smaller candle, the first needs to be way bigger than the others around and the second must be smaller then them. Engulfing candle should have almost no shadow at the close and be stronger than most closest candles in the other direction. Tick volume should also confirm that.

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    Wow. Much Forex. So Monies. Very Opportunity.Many Trade. So Amazed. Wow.

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    Rookie layigold's Avatar
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    Let me start by appreciating you for this discovery though I have not personally gone through the chart to confirm that myself since I will have to download c-trader platform to confirm that . I need to say that learning of forex remains a continuous exercise and there is no level a trader may reach where he will say that he has got to the peak of learning , the more you learn and observe , the more discoveries you make .I will need to conform this before I accept and begin to use this to give pin bar further confirmation .

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    Registered user ara's Avatar
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    The shape of Pinbar candlestick viewed on lower time frame chart

    As we know that the pinbar candlestick when it viewed from the lower time frame it will be like this...

    example daily pinbar viewed from H1 chart


    So if we find this kind of pattern in H1 time frame then that is a pinbar on the daily time frame, so we don't need to switch the chart to the daily time frame.

    In accordance with my observations, this kind of pattern will be a good signal when we find it near support / resistance in the sideway area.
    I divide into 2 types of signals ...

    1. Breakout signal



    2. False Breakout signal



    3. Spike signal (fake breakout+breakout)



    4. Reversal signal



    All chart patterns above are pinbar if we look at high time frames ...

    Breakout


    Fake breakout


    Spike


    Reversal


    To be continued

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    Registered user ara's Avatar
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    How to trade

    Rules : The pinbar tail must be pointed


    Reversal and Fake breakout


    Spike


    Fake breakout and Breakout

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    Rookie Killer_Queen's Avatar
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    another example of chart patterns, i suppose because each breakouts and reversals can be analyzed by drawing the lines and this requires nothing but only focus on watching market chart. i also draw these lines to mark where i want to enter and place my stops to avoid unexpected things from market. so far trading with this method is very satisfying for me as we both using the similar ways of analysis, without indicators.

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