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Let me preface this discussion with this - I've proven many times over that the smaller the timeframe, the less reliable a candlestick pattern becomes by ITSELF in isolation. In other words, a hammer that appears on a 1 minute chart is not a valid signal in my opinion simply b/c there is a hammer in front of you.
Personally I have found that any type of minute timeframe (1-60) is probably going to require some sort of additional confirmation outside of just the candle pattern. |
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Regarding not viewing candlesticks in isolation, one of the major points raised in the
VSA thread is to always look to the background, or the context, within which a "signal" occurs. Probably the post that summarises and highlights the importance of viewing the context within which a signal occurs is this
one.
In "pure"
VSA analysis the price bars do not have an open on them, the bars are simply HLC, with a volume histogram below. Now, candles of course require an opening price on them, and a lot of the traders on the
VSA thread use candles anyway, so there is plenty of scope for applying candle "patterns"/bars with background/context, especially for intra-day trading.