{"id":25701,"date":"2022-12-27T02:05:00","date_gmt":"2022-12-27T02:05:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=25701"},"modified":"2022-12-28T13:55:11","modified_gmt":"2022-12-28T13:55:11","slug":"are-candlesticks-enough-for-trading-what-does-the-new-elite-currensea-guide-teach-us","status":"publish","type":"post","link":"https:\/\/businessyield.com\/forex\/are-candlesticks-enough-for-trading-what-does-the-new-elite-currensea-guide-teach-us\/","title":{"rendered":"ARE CANDLESTICKS ENOUGH FOR TRADING: What Does the New Elite Currensea Guide Teach Us?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

The use of candlestick charts has been trending in recent times and is being adopted by the majority of people who are new to trading. It’s not a surprise, given their flexibility and the fact that they create a variety of patterns that are a sign of the probability of future prices that are either bullish or bearish. However, are they enough as a stand-alone approach to price-action in trading?<\/p>

The majority of candlesticks are not trustworthy, but there are some patterns that are reliable enough to be a part of the trading strategy. The type of candlesticks that can be utilized is dependent on factors such as the type of market you trade in, the timeframe you trade, and other circumstances that pertain to your strategy for trading.<\/p>

There are numerous kinds of candlestick patterns<\/a> believed to be a sign of anything from imminent price reversals or continuing the trend currently in place. In most cases, they are provided with rational reasons for what it could mean to predict a result. However, to get an accurate and clear picture of what is going on in the market, you need more than just candlesticks.\u00a0<\/p>

The extensive guide on price action from the Elite CurrenSea team offers impressive insight into what should be used in a regular trading strategy. The guide obviously covers the majority of candlestick patterns, including its basic and its continuation and reversal on bearish and bullish markets. However, the guide also dictates that traders utilize other factors such as price swings, momentum, and corrections, price patterns, the path of least resistance, and flow versus resistance. For many reasons, the price action guide by Elite CurrenSea<\/a> provides a great explanation of why candlesticks alone should not be relied upon. We will discuss these reasons below in the article.\u00a0<\/p>

What Is Wrong with Candlesticks as Stand-Alone Methods?<\/span><\/h2>

For certain traders, it shouldn’t be a surprise to learn that candlesticks don’t provide reliable signals for buying or selling by themselves. In order to be considered a signal worth taking action on, it is often necessary to add additional filters in order to eliminate patterns that don’t make sense. Here are a few examples of filters that can look like this:<\/p>