StockFetcher Forums · General Discussion · Candles be damned<< >>Post Follow-up
klynn55
418 posts
msg #63077
Ignore klynn55
5/27/2008 11:48:07 PM

If you look at Bulkowski's site and you try a program called Candlepower6, both point to Candlesticks dependent on another indicator for success. For instance, at http://thepatternsite.com/CandlesSingle.html, time and time again, the most common patterns are 50% continuation or reversal, is that all there is? anyone trading candles on their own merits?

luc1grunt
622 posts
msg #63080
Ignore luc1grunt
5/28/2008 7:07:17 AM

candles serve to reinforce or alert you to "possible" changes in action. Knowing candle patterns is important, but I don't know many using them as a stand-alone in their entry/selection.

Take a "hard" look at americanbulls.com and their results. Note the method they record the buys from the selections (if a candle proves to be correct by the end of the day, they use the opening price).

FuriousThug
256 posts
msg #63130
Ignore FuriousThug
5/29/2008 5:54:33 PM

I've looked a lot at candlestick patterns and backtested quite a few of the ones considered to be the highest probability. Unfortunately, I found that, assuming you traded candlesticks on their signals alone, you would probably do just as well going long bearish patterns and short bullish ones as you would by following their intended signals.

I'm not about to abandon candlesticks, though; but I'd like to find a fairly reliable set of indicators that would complement candlesticks' short-term signals - I like screening by candlestick patterns. Be curious to see anyone's filters who've started with a candlestick screen and then narrowed with fairly effective indicator criteria as well.

The one great thing about candlesticks themselves that I like to use is the visual info they give on their own. Long shadows or long solid bodies by themselves can give you a great clue as to near-term movement (for example, today's upper shadows across the indexes (and spinning top in the NYSE) plus the approach to their respective short-term MAs makes me a little cautious about going long tomorrow--though we'll see what happens; I can't seem to get ANYTHING right these days).

Todd

StockFetcher Forums · General Discussion · Candles be damned<< >>Post Follow-up

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