Since I started trading the Forex market, I disregarded the use of Candlestick Patterns where I simply relied on those complicated moving average tools. I have been spending most of my available time reading and participating on various forum discussion asking for some tweaks and the best settings for my tool.
And the result of more than a year relying on such indicators is more on the negative side of failures.
I came to realize that the market behaves in such different ways which makes the tool fail in the long-run. It still works but provided that you need to make some modifications all over again which can be very complicated for the newbies to learn and understand.
However, I came across one interesting thread on Babypips where the author of the strategy simply uses Candlesticks patterns as his only tool in trying to trade Forex. He has even provided a solid proof of his own success by demonstrating on a live-trade. His thread already composed of hundreds and nearly thousand of pages for the interested newbies to read. It's a tough challenge to read them all but the benefit would be great.
Again, there are several tools out there that can predict future price movements with some good accuracy but the problem lies on the part of trying to determine the Entry and Exit points. Take note that if you happen to enter your order late, there are chances that you will earn nothing and the worse case is that you will be paying for the spreads. The same goes with the Exit points where you do not have the exact level of taking your profits. There are chances that if you wait long enough, the price could suddenly fall-back where you end-up earning less. Or the opposite will happen where after you have decided to take your profit, the market trends more further as you have never expected.
The answer to all of this situation is the use of the Candlestick Pattern since it allows you to determine the exact Entry and Exit Points. It will become even more powerful if you are to combined it with your other set of indicator tools.
|The Power of the Candlestick Pattern|