[stpips89]

Originally Posted by wrbtrader »

I strongly agree that if someone doesn't understand Japanese Candlestick patterns or any other pattern...don't bother trying to automate it as if the automation process will enable that understanding. Unfortunately, too many traders that automated or coded Japanese Candlestick patterns have a lack of understanding about the patterns but are great programmers.

The reason why Japanese Candlestick patterns are poorly suited for automation is because it's very dependent upon "market context" and that market context can not be automated nor coded. Simply, at best, coded Japanese Candlestick patterns is only good for identification purposes and not good for trading purposes as an automation system.

Further, I've never met a profitable Japanese Candlestick trader that's via automation but I have met profitable discretionary Japanese Candlestick traders that are greatly dependent upon "market context" as their primary trading tool while using Japanese Candlestick patterns as a confirmation method to that "market context".

I would agree totally with this point. I am a PA trader who relies upon market context and candlestick patterns. I don't see how anyone could attempt to automate candlestick trading, or really trading at all, so much of trading depends upon your ability to read and trade underlying market sentiment, it seems nearly impossible to successfully mechanize the ability to do this properly...

[calsprdr]

The godfather of candlesticks, Steve Nison, says over and over:
Do NOT use candlesticks without confirmation from other indicators.

[Phil-n-Texas]

early on when i was first introduced to candlesticks and T/A a trading mentor/buddy of mine used the analogy of each candle was like its own little football game between the bulls and the bears.

[bobcollett]

Originally Posted by laurus12 »

Why all the fuzz? One day a acquaintance of mine, who is not into trading, came into my office and looked at my charts. Then he cocky said, pointing at all the ups-n-downs: "Why don't you just sell when it is going down and buy when it's going up?". So that's what I am doing now. Works great.

Laurus

Hi Laurus
I love your idea...........
What market?
What time period?
Your acquaintance saw your chart. Did he see the bar forming?
kind regards
bobc

[joshdance]

Originally Posted by laurus12 »

Why all the fuzz? One day a acquaintance of mine, who is not into trading, came into my office and looked at my charts. Then he cocky said, pointing at all the ups-n-downs: "Why don't you just sell when it is going down and buy when it's going up?". So that's what I am doing now. Works great.

Laurus

Agree with the simplicity, however, ask your acquaintance to give it a try with real money for a month and see how it works for him. Then ask him if it's as easy as it looks.

[phantom]

Originally Posted by calsprdr »

The godfather of candlesticks, Steve Nison, says over and over:
Do NOT use candlesticks without confirmation from other indicators.

Nison is hardly the "godfather of candlesticks"

The Japanese traders used stix long before Nison was a gleem in his mother's eye.

I, for one, don't use other indicators to confirm price rejection following a channel breakout.

It's all in the stix.

[stpips89]

Originally Posted by phantom »

Nison is hardly the "godfather of candlesticks"

The Japanese traders used stix long before Nison was a gleem in his mother's eye.

I, for one, don't use other indicators to confirm price rejection following a channel breakout.

It's all in the stix.

I would agree with you that it's 'all in the stix', you don't really need indicators to confirm candlesticks, afterall, indicators are just derivatives of price, so you are basically confirming price with a less-vivid representation of it, it just doesn't make any sense.

[fxtrader12]

lol,

I'm completely unconvinced that you have an edge with price action. No edge with candlesticks patterns too. On many occasions thecandle patterns fail to deliver winning trades. Some pin bars are fakeys, one rather could filter that with indicator/s.

The main issue with price action lobbists is that they never finished studying what indicators work well.