6 Comments

  1. Brad

    Candle stick analysis patterns is one of several indicators. One needs to also analyze volume-MA, RSI & Stoch patterns to pull the trigger; especially with swing trading within short time frame, so which stocks currently show the best pattern repetition with this NN candlestick output? I will analyze against my key indicators & provide feedback.

  2. Muhammad Abu-Izzah

    if you are able to predict one candlestick, you can explore several timeframes. Meaning, if you are able to predict the next hourly candle, you could concurently predict the next 15 min candle, 5min candle, and lastly the 3min candle, if you have many that point to one direction you can enter a trade on the smallest timeframe ie 3min in this case

  3. Shawn McConnell

    The tool then uses the closing candle stick to calculate it’s next move in trend? I would think that this is good for reversals. What about multiple days of the same kind of candle say at a ceiling or floor?

  4. admin

    Thanks for your comment, Shawn. In general, if typical shapes and candles in row combination are repeatable at tops and bottoms, the tool should be able to decode reversals. However, your idea looks interesting to check. If we focus only on reversal patterns, it can give a clearer signal. Is that what you meant?

  5. Mookie

    Volatility in the foreign eghxance is rather a matter of the right timeframe. I wouldn’t use less than the 1hr chart, ideally you’d want to use the daily or 4hr chart. Candle stick patterns should always be used in conjunction with other indicators since these patterns merely sign a potential reversal from a support/resistance level.Popular reversal patterns are bearish/bullish engulfing, inside bars, doji spinning top, hammer-reverse hammer, evening/morning star. You could study other patterns but are in my opinion less effective. They don’t have to be exact text book examples on a chart. There’s most of the time a degree of distortion, the more distorted the less valid it becomes. This is something you learn through experience. Overall, spotting a reversal candle pattern is fairly straight forward and simple, when there’s a good amount of doubt don’t trade it.Another advantage of candle patterns is that it enables one to set a stop loss, usually inserted a couple of pips away from the other extreme of the pattern .

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