Monday, August 28, 2017

Playing with Candlestick Patterns

Think or swim has many candlestick patterns programmed into the system. I've learned by exploring them that some patterns very rarely appear...and seem to be significant when they do, such as the "stick Sandwich", "morningstar", "deliberation", "dark cloudrising", "homing Pigeon".

"williams fractal", "ZigZagStepPattern", and to a lesser degree, "harami", "engulfing," "hammer"--(lesser) are all very reliable and occur frequently...with williams fractal being uncannily accurate with regards to bottoms and tops of all magnitudes...however it is useless since it only occurs several bars after a top/bottom. It is basically confirmation that a new trend has potentially begun. Zig Zag is far more selective and much more likely to pick out major tops. Once in awhile it throws false signals, but these are usually in an area near the highs where I wouldn't be trading anyway, or during a rise...reassuring that prices won't move lower!

Others, such as "thrusting" are usually wrong and could be a worthwhile contrarian indicator haha.

"ThreeOutsideDown" and "ThreeOutsideUP" seem very useful as well, although they often lag a bit and may be more useful in terms of confirmations, perhaps it is time to add margin to the trade when these appear.

Thankfully, there is a way to put them all on the chart at once, just click patterns next to studies and drawings on the blue bar where one enters the ticker symbol...then select ones which appear relevant to a particular security. In this way one can whittle down the studies to

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