Are candlestick patterns overrated?
Are candlestick patterns overrated?
Ok so when i started with trading I try to learn so much about candlestick patterns but when i started looking at other traders on YouTube and even generally online I hardly see anyone even consider them while trading yeah they might look at color of candle but that’s all. Specially those advance candlestick patterns like rising soldiers and all that, I don’t even remember anyone even mention them once while trading or in any tutorial. So my question is for trading veterans here do they use it or is it really overrated thing which serve no purpose in real time trading?
Candle sticks aren’t overrated. There are two types of traders based on analysis the fundamental and Technical traders. Although some combine both. But a technical trader can’t do an analysis without candle stick, it is so important that it is indispensable. If you claim the YouTube videos you have watched or the other online articles and videos you have seen on trading hardly talked about candle sticks then what could they be using. Candle sticks is a tool that help interpret past events (price action over time) it makes prediction of future price movement with regards to past events. This candle stick formation tells stories of prices. Just like the three black soldiers, the hanging man and lots of others each gives important signal to traders especially when they form at strategic point in the market