Wednesday, March 24, 2010

Candlestick Reversals

I am not a big candlestick trader, but have been using them as part of a bollinger band analysis that I have found useful in conjunction with Elliott wave analysis (see Bollinger Band Experiments).

While I havent used candlestick patterns as trading tools yet, I have noticed quite the pattern on the 3 hour timeframes with reversals. Uncanny really, but a long tail seems to indicate a significant reversal to follow... almosty every time!

Would love to hear thoughts from others who have used candlestick analysis in their approach. Is there a rhyme to this reasoning?

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