Favorite and most powerful candlesticks

[TinGull 10]

Just curious as to if what your favorite candlestick trigger would be....if you could only choose one to trade

 

I vote for the harami!

[walterw 10]

I like the Hammer.

[brownsfan019 17]

Tough to decide on just one...

 

I'll take hammers under certain conditions every time (and the inverted hammer as well, since that's basically the same thing just upside down).

[tony1d 10]

Hammer and shooting star but i really like long tailed candles at tops and bottoms, those seem to work best

[Soultrader 12]

Shooting star and doji's at key pivots.

[MrPaul 10]

engulfments

[brownsfan019 17]

This is an interesting thread - it appears many of your more common candlesticks are something many traders here use. Some use them mainly (like myself) and others use them in conjunction with other items (like Soul with Pivots).

 

I think there's an important thing to note though - MANY traders use candlesticks, in some way, shape or form. There are purists like myself that are hunting for candles first and others use candles for additional confirmation. I think that's why you see candles work well at times - when all of 'us' are on board at the same time, it's easy to see why candles can be so powerful at times. In the end, candlesticks and anything else can be a self-fulfilling prophecy if enough people are using them at the same time, right?

 

I think it's prudent of all traders to at least be aware of candlesticks and the story that is being told between the fight of the bulls and bears. Every candle print is saying something and candles can provide a quick and easy way to see who won the fight or if it was a draw. Being able to see the story being told in front of you can help your trading, even if just used as a confirmation for some other methodology.

[notouch 10]

Definitely the bullish hammer and it's bearish mirror, the shooting star.

 

They tell you a lot about market psychology. The price has been auctioning lower but gets sharply rejected at a certain level to close higher (for a perfect hammer) or lower (for a perfect shooting star). A doji represents indecision whereas a hammer/shooting star represents a more decisive reversal.

[BlowFish 10]

Three black crows - but only if I am already short :-)

[Tasuki 10]

Given my handle (Tasuki) I'll say I'm partial to the Tasuki continuation gap patterns, although I will only take them if the third candle is small, and I prefer to see something of a nice tail on it. The gap also needs to be a professional gap, not an amateur gap (professional gaps initiate moves, amateur gaps continue moves and are sometimes called "exhaustion" gaps).

[walterw 10]

The gap also needs to be a professional gap, not an amateur gap (professional gaps initiate moves, amateur gaps continue moves and are sometimes called "exhaustion" gaps).

 

Hi Tasuki, can you expand a little more on this gap concept ? how do you diferenciate professional from amteur ? thanks Walter.

[Tasuki 10]

Walter, the "pro gap" vs "amateur gap" are just terms from Pristine's methodology. They don't *know* who's causing the gap, but they assume so by the price action.

 

If you see a gap that breaks out of a trading range, Pristine says that this is most likely professional money that's causing the gap. The reasons they (Pristine) give are the same as you'd find in VSA--they pros are trying to run the stops of traders who thought the range would resolve in the other direction and simultaneously convince traders who are already in the trade and making money from liquidating.

 

If you see a gap that extends an already-existing trend, Pristine says that this is most likely the retail traders who are all jumping in late in the game, driven by greed--they don't want to miss the boat. These gaps are often the last gasp of the bulls before the trend reverses, and thus they are called "exhaustion gaps."

 

Hope I've made this relatively clear.

[walterw 10]

Walter, the "pro gap" vs "amateur gap" are just terms from Pristine's methodology. They don't *know* who's causing the gap, but they assume so by the price action.

 

If you see a gap that breaks out of a trading range, Pristine says that this is most likely professional money that's causing the gap. The reasons they (Pristine) give are the same as you'd find in VSA--they pros are trying to run the stops of traders who thought the range would resolve in the other direction and simultaneously convince traders who are already in the trade and making money from liquidating.

 

If you see a gap that extends an already-existing trend, Pristine says that this is most likely the retail traders who are all jumping in late in the game, driven by greed--they don't want to miss the boat. These gaps are often the last gasp of the bulls before the trend reverses, and thus they are called "exhaustion gaps."

 

Hope I've made this relatively clear.

 

Thanks Tasuki for that explanation... cheers Walter.

[wrbtrader 10]

Although Japanese Candlesticks is only a secondary methodology to me...

 

My current favorites are Hammers, Haramis and Engulfing patterns.

 

However, if someone said I can only use one from the above, I would go with Hammer patterns.

 

Mark

(a.k.a. NihabaAshi) Japanese Candlestick term

[Nick1984 10]

What pattern does your handle represent Mark if you don't mind me asking?

[wrbtrader 10]

What pattern does your handle represent Mark if you don't mind me asking?

 

Hi Nick,

 

Nihaba Ashi is not a pattern.

 

Instead, its just a term or phrase with the meaning foot steps.

 

Also, the word Ashi in martial arts implies foot or leg.

 

Thus, if another word follows after Ashi, for example, such as Ashi-Barai...

 

It implies leg sweep.

 

Mark

[Nick1984 10]

Hehe thanks for that Mark,

 

forgive my ignorance lol but you never know unless you ask!