Candlestick discussion

I wanna share a topic from our local area. Might be pretty basic for a lot of you, but I still think it could help someone out there. If someone else has already started a similar thread, I’ll just close this one. But if not, I’ll keep it open for everyone to join in, and hopefully it’ll be useful somehow. Appreciate it.

These are mere basic ideas that if you rely on them, it will be a matter of time before you blow your account. You can't just place a buy order whenever you see a doji printed on the chart, there are more important things to look such as the trend, the phase of the market,  fundamental news and others. Those candle stick patterns are only important when every other thing have aligned and they should never be used in isolation.

If you have began to trade, you will see how these what you called signals are nothing but it will only mislead newbie traders. All these patterns can form but the case might later be opposite. There are still more accurate ones than this with more candles included. I will prefer that one that this. Also some people draw patterns to analyze.

Candlestick formation depends on other things not exclusive to what it tells you at the moment. So you have to be able to understand the trend and the direction of the market to see if the candle that forms also aligns with it, if not then wait for the candle stick that is aligning with the trend. Again, the time frame that it appears is also important because the longer time frame that it appears, the possibility of it confirming the purpose of it appearance. Above all, don't depend on just candles and also use your SL in every trade because nothing is certain with trading. Stop loss help you to go back to trade if you lose that trade but if you open your trade, you will be surprised it may gradually burn out or you profit from that mistake but most times when you don't use SL or TP, you earn up losing. The market is up and down.

There are plenty of trades about trading tutorials like this one but the problem is that many of them are either not updated or achieved. Some images are not displaying again, so it's difficult to know which one is having good details and the ones without because there are no images and trading can't be explained without picture, it's will only stress the head of learner. It will be more better if you explain those candles and what they are about, so people can contribute more.

These candlestick behavior sometimes has got disparity as this does not apply all the time but then most often it does happen and that is why most persons has considered it a thing but just know they have got some varying disparity and so when you encounter one of such situation you just understand that it is one of those peculiar situations and you can still count on this some other time but always apply that caution knowing that there are times you will get to experience them.

Just following mere candle sticks as a trader will land you into huge loss continuously because there are more to trading and understanding the candlestick to use them on when to open a position or close your position. There are some fundamental news that will thwart the candle stick pattern from repeating itself. Trading doesn't depend only on technical analysis. Only trade with an amount of money that you can afford to lose as you practice to have more experience in trading. It's easy on paper but in reality it's the opposite.

Studying candlesticks alone will not make you a successful trader. If you even ask and make inquiry from some successful traders you'll find out that they have no idea about the names of different candlesticks, only a few that usually reoccur like the "W" and "M" pattern. If you intend and plan success in trading, you need to study more than just the name of candlesticks.

The most important takeaway point about this candlestick charts is that they are the fastest way to mentally visualize  market psychology and how it speaks about  the buyers and sellers interactions with very simple and understandable single and easy-to-read price bar. Newbies to trading would find it very helpful as much as the oldies would. It is just one of the other ways a trader can gain an advantage during trading activities and am sure one has to remember to pay rapt attention to the market movement before using the candle stick approach during trading at any time or hours of the day.

These candlestick patterns and signals depend on the market's current condition and trend. Usually, they use these candlesticks for reversal signals, but it isn't good if you see these candlesticks on a lower time frame because most of them are false signals. It works mostly on higher time frames, but it must be combined with other signals or indicators to confirm the reversal, like RSI divergence. Using them alone won't work much, but I do use them and sometimes use the trial-and-error setup where I risk pretty low compared to the premium one where I risk higher. If it is in confluence with other strategies, I am going to put it in a premium setup, but if it's not, it is for a try-and-error setup.

Looking at the pictures above, all these candle sticks pattern are very much ok, they are what it is, but the only one am skeptical about is the hanging man candle sticks,  to the best of my knowledge, if a hanging man candle sticks is formed at a resistance point, their is a very high possibilities that the market is about to reverse. The morning star and evening star candle sticks hardly fails especially when formed in a four hour timeframe and at a support or resistance point, but take note that the size of the candle sticks comes with his own sentiment, and the size of the candle sticks determine the numbers of buyers and sellers are there in the market, but at the end of the day, the decision making is left for you the trader to decide which is best, but take note that if you are actually good in reading candle sticks, you are like going to win more trades than losing as long as you can manage your risk properly.

I have seen many candles or red candles and green candles but when it comes to trading it is completely opposite. And it is not effective in any way but the thing you mentioned it can help the newbies a little but it will confuse the old traders. This year during the bull season candle after candle has stood green candles, but I have been trading regularly. But sometimes I have been late to buy again but somehow it did not get success, so these candles I think can be somewhat effective to bring benefits only to those who are new to trading.

These ideas are not new and are being used in traditional markets as well. I've first learnt about candlesticks in forex markets which was also quite useful for me in stocks and options. Cryptos follow what these traditional markets follow but does have a lot of manipulation as people can easily get driven away by a fake candlestick pattern. To really be honest, these patterns will not always work with cryptos. Every exchange has their own chart and these patterns can not even be repeated for the same coin but on different charts. Following one chart will make us think we have identified the pattern and can quickly book profits on the next coming candles but this can easily be manipulated by other charts. It is even difficult for people to find right charts to start analysing these candlesticks. I don't say that these are not helpful. Anyone starting with trading journey must know the candlestick patterns as it is the base for almost everything but depending on those completely might not be a good plan of action.

I personally don't even consider candle stick when trading, although everyone has their own pattern of trading, But in own perspective I don't feel that candlesticks define opportunities in the market in 2025, Because when I started I was into candle sticks as an entry confirmation and market definition, but as time goes on I started realising that different candles form at any part of the market casually, it is not of high consideration anymore, Market structure and liquidity are the ones of high consideration in the market today, and I find them very satisfying and fulfilling Maybe some People out the still see opportunities in candle sticks but as for me I don't see them any more.

The thing is, in crypto, the market movement is quite fast, so most of the time, even if you assess where it is going, it is already heading to a different direction. This is why, even if you are good in determining what can happen, still, hard to achieve your target profits. That is why, most traders are always in front of their screens, following the possible movements and studying the previous ones. The candlestick concept is very useful for some who already got acquainted with the market. But if not, it is just mere candles without meaning.

The candle stick psychology is basically one means to learning technical analysis and having a deep knowledge of this do quite aid a beginner on their trading journey a good deal. Even then, it doesn’t mean they are always correct as, these candles don’t always form in the same way, you have a difficult time having to recognize them and the actions they do purport but still, you could only try and I don’t find them the utmost when used solely.