Candlestick Signals and Forex

[wyichc]

Dear Fellow Traders,

I am a novice to this site and hope you can assist.

I have a question. Can you use candlestick trading signals for trend reversals successfully with Forex? The reason I ask is that a key complementary indicator to use with candlesticks is Stochastic and/or trading volume; indicators that I believe are not available for Forex.

I would be grateful to hear of people’s experiences.

Regards

Ian.

 

[alnthmsn]

Dear Fellow Traders,

I am a novice to this site and hope you can assist.

I have a question. Can you use candlestick trading signals for trend reversals successfully with Forex? The reason I ask is that a key complementary indicator to use with candlesticks is Stochastic and/or trading volume; indicators that I believe are not available for Forex.

I would be grateful to hear of people’s experiences.

Regards

Ian.

Ian
My experience for what its worth. NEVER rely purely on candles to trade forex esp individual candles.I use them only as an indication of a trend change and only when at least a three candle pattern is showing on a daily chart. Stochs are possible with forex using MT5 charts. With forex I have a simple rule - dont trade against the trend and for this I use a simple EMA cross pattern reinforced with another indicator such as CCI. A candlestick pattern would give me extra confidence in the trend change. Other thing - keep an eye on news releases - they can make a mockery of TA with forex !
Hope this helps
Alan

 

[Tradingkid]

I was quite interested to read your question and subsequent reply on candlesticks and forex.
I'll throw in my pennies worth for it may help. I NEVER use candlesticks as I believe that the forex market has no opening and closing time which is the ery essence on wich the candlesticks are based.
Note, i am no great shakes, only trading demo at this time, but just about to go life as soon as i have sufficient courage.
Tradingkid

 

[£10kLoser]

I wouldn't say the very essence of candlesticks is based on having an opening and closing time!

Candles are probably just as good with Forex as most things - unreliable but another hint of an indicator.

Stochastics and volume are available and widely used on Forex. Volume is shown by Ctrl + L on Metatrader...

 

[simoncs]

Hi wyichc

I am only a beginner myself but was lucky enough to come across trader_dante's thread.
On here he and his many followers manage to prove that specific candles can be used with S/R to be very effective in all markets especially FX.

The thread is very long but I would definitely recommend reading all of it. I for one found it invaluable and has begun to turn my trading around.

original thread
http://www.trade2win.com/boards/first-steps/26947-making-money-trading.html

continuation thread
http://www.trade2win.com/boards/general-trading-chat/32991-potential-setups.html

hope that helps
Simon