Useful Candlestick Studies

[kkrac]

Below are 2 candlestick painting indicators for your use.

You should always use multiple indicators and take/cut positions when they show confluence. However, for the purpose of understanding these candlestick studies, let's evaluate them by themselves, "naked," and without any help from moving averages, supertrend, or anything else you may use.

Please keep in mind: I am not proficient in coding/scripting yet so my understanding of how these were made is lacking. I only know how to analyze them purely from a trader's perspective.

You'll see the first picture has normal HeikenAshi candles to compare them to.

https://imgur.com/a/yGfpbTT

These are "MACD Candlesticks." They have MACD coded into them. I like them because they tend to alert me of a potential call/put buy (along with other indicators) pretty early and they usually keep me in a trend long enough to take nice profit. I actually got this from Boiler Room Trading's Facebook page (lul).

https://imgur.com/a/HS18ulP

https://tos.mx/fuD3FW
These are Mobius's candle trend candlesticks. This is my go-to candlestick study as I find it to be even more accurate than the MACD candles I was using for quite some time. It is more accurate in identifying slightly longer trends which can make for some incredible profits. I got this from the ThinkScript Cloud site where many people post their indicators.

https://imgur.com/a/iCO8LcY

https://tos.mx/2ehpgv
You can interpret the source material yourself and come up with conclusions and rearrange some stuff. Someone who knows what they're doing usually takes the scripts I upload and tweaks them to add features, so be on the lookout for that!

And please make sure you don't use these to trade alone. These are best used in tandem with other indicators you trust as well as a well-defined risk management strategy (ie: stop loss at -25%). As always, be careful out there in the market jungle!

"You should always use multiple indicators"

Says who?

there is no standard in technical analysis.
In fact, some profitable traders I know don't use any indicator whatsoever, just price action and volume.

Anyway, what I'm saying is indicators is not the standard. Each trader with its own style. If you're profitable, go with it.

Indicators are lagging. That's a fact because they show past price, it's not debatable.
Anyway, if it works for you and you're profitable using them, congrats.

 

[MerryDay]

Yes, the standard in Technical Analysis is to use multiple indicators over multiple timeframes.
Read more here:
https://usethinkscript.com/threads/...nt-to-successful-trading-in-thinkorswim.6114/

But yes, you are also correct. Price Action traders do not make great use of technical analysis indicators. They utilize chart, candlestick, and price patterns to provide entry and exit signals.
Read more here:
https://usethinkscript.com/threads/price-action-toolbox-for-thinkorswim.10747/

There definitely are best practices for the Technical Trader
and
best practices for the Price Action Trader

For Example:
It is best practice to not just rely on one indicator or timeframe as a technical trader because of lag, noise, and false signals.
It is best practice to not just trade on a single candlestick pattern or timeframe without other confirming patterns as a price action trader because price action requires reading the whole chart not just candlesticks or price or volume.

Reading the books on the standards increases traders' profitability.