How do I interpret candle stick chart in stock market?

[nameeta26 11]

Hello, I am planning to invest in stock market. I would really appreciate some help. 

[CrazyCzarina 17]

Reading candlestick charts and finding their patterns are as easy as learning how to drive. We might feel confused at first, but soon after the initial phase, it becomes the easiest thing to do.

[nameeta26 11]

Thank you boosting up the confident. I will surely practice it, but any suggestions on the first step and the effective plan to read candlestick chart?

[Trader1 10]

I wouldn't spend a lot of times on it if I where you, the reason is that these candlesticks patterns are not working as good as they used to, this is what I have noticed over the years, and the reason for that probably are the algos, they don't seem to respect these patterns at all, and very often push price beyond them, they do work some times though,  but it's nothing you should trade by them self, only use them as confluence and other things in your trading,if you want to learn about them, try to learn from Steve Nison him self, he was the guy bringing this method from Asia. and obviously he has the bests and most accurate knowledge about them, I have seen some free vids on Youtube if Im not misstaken.

[nameeta26 11]

Thank you for the reply. If it is true then which technical chart would be the most effective?

[CrazyCzarina 17]

A demo is used for testing new strategies and learning before going live. So first follow demo account then move for a live account. 

[divyanshisharma 2]

It just need practice and practice and practice to understand the pattern in charts.

[CrazyCzarina 17]

The experience can be gained through practicing with a demo account.  You have to make hundreds of trades on the demo account to make sure that you have learned the methods completely.

[zdo 20]

On 8/17/2018 at 10:03 PM, Trader1 said:

I wouldn't spend a lot of times on it if I where you, the reason is that these candlesticks patterns are not working as good as they used to, this is what I have noticed over the years, and the reason for that probably are the algos, they don't seem to respect these patterns at all, and very often push price beyond them, they do work some times though,  but it's nothing you should trade by them self, only use them as confluence and other things in your trading,if you want to learn about them, try to learn from Steve Nison him self, he was the guy bringing this method from Asia. and obviously he has the bests and most accurate knowledge about them, I have seen some free vids on Youtube if Im not misstaken.

Trader1,  that’s pretty good advice - in large part because even the traditionally 'most reliable' candlestick patterns NEVER backtested well on their own (pre OR post algos' ascendancy).

Also, it goes beyond  "use them as confluence and other things".  Traders need to learn how to establish context level  signals first, then learn how to look in those contexts for candlestick (or whatever) chart patterns as triggers.  Most, of course,  think that just learning the patterns in the 'book' ( Nison in this case ) will suffice... they either assume context doesn't matter or they assume 'context' will come automatically if they just study the 'patterns' well enough ...   ie they 'train' conventionally... in the wrong order of precedence (... which may be sufficient in production, service, or even management work - but, in performance work, damages noobs' chances of success ... order of precedence training errors keep them in that lower 78% pareto 'forever'... 

...many won't even get what i'm talking about... another 'many' fall under  the 'voice of trading' narrative trance which programs the opposite... noob, if you do get what i'm sayin' - ignore the crowds, 'pay the price' of really learning context first ... and up your chances of making it in trading ... )

[nameeta26 11]

Thank you for the helpful replies. I am practicing it in a daily basis on the paper trading. Sometimes its success but many times it is giving a false alarm. 

[CrazyCzarina 17]

Practicing Demo will only make you learn the Forex Structure, to learn properly, invest small chunks in Real Forex Market and learn to trade with real money.

[aimhi 10]

Candle stick pattern is one of the easiest charting patterns available to learn and make money. However, new traders never learn about the skills needed for earning money but they rush for making money and eventually lose their money.

[RJo 10]

On 8/17/2018 at 10:03 PM, Trader1 said:

I wouldn't spend a lot of times on it if I where you, the reason is that these candlesticks patterns are not working as good as they used to, this is what I have noticed over the years, and the reason for that probably are the algos...

On 9/24/2018 at 12:22 PM, zdo said:

Trader1,  that’s pretty good advice - in large part because even the traditionally 'most reliable' candlestick patterns NEVER backtested well on their own (pre OR post algos' ascendancy)...

This is an interesting discussion. For one thing, it once again confirms that performance can't be measured without testing which is true. Of course, there are many algos that detect and trade candlestick patterns (Gartley, double top, etc.). Arguably, everything that an algo measures is some kind of a price/volume pattern. This is basically the name of the game in autorading... Identify favorable patterns that periodically appear in a market, and then define those patterns in programming code. Also, those definitions can be adaptive and/or incorporate machine learing/AI. At the end of the day, mathematic testing will report back to you in black & white (or green & red, so to speak). If you can't test it, don't trade it.