I use candlesticks on my own charts. I like them for how they visual represent prices and how they quickly show the contrast of the open, close and daily range. I studied how best to use them inside a trading system as confirmation of my existing signals. I was very happy when a trader that I admired created a candlestick eCourse. This was even an advanced course beyond just theory but also a thorough study of actual backtesting, quantifying, and looking at results of candlesticks across multiple markets, trends, and years of data.
JB Marwood has created a very informative Candlestick eCourse on Udemy. He starts out by explaining the history of candlesticks as visual representations of price action on charts and then moves on to the basic principles behind candlestick chart patterns. This course reveals the historical performance of all the classic candlestick patterns across the futures markets, forex markets, and stock market. Mr. Marwood uses Amibroker code to backtest the visual patterns of candlestick charts. It is very interesting to quantify candlestick pattern performance and see the results versus the preconceived opinions about how they should play out based on traditional beliefs.
The author also adds in moving averages and RSI into his tests as confirmation of patterns to help improve the results of standalone candlesticks. This course backtests 25 of the most popular charts patterns across all major futures, forex, and stock markets. Marwood explains how to turn these signals into your own complete trading system. The image in this blog post is also inside the course along with an included candlestick eBook. The results of his backtesting suggest that some patterns are not profitable at all and he presents the results clearly for you to see. The backtesting results in this eCourse also reveal that one specific candlestick pattern is better than every other candlestick pattern that was tested.
Anyone interested in the markets for stocks, forex, futures, and trading candlestick patterns will find this course a great value for its education and information. I was very impressed with his work as an educator through this course.
Here is a link to this course by JB Marwood –> Candlestick Analysis For Professional Traders
