How I Trade My Favorite Candlestick Pattern Video Tutorial

Candlestick patterns are very important trend reversal and trend continuation signals. If yo want to become a consistently winning trader then you must do one thing: Master candlestick patterns. The beauty of these candlestick patterns is that they are leading signals meaning you know ahead of time where the market is thinking of moving. Watch the video below in which Akil Stokes explains how he trades his favorite candlestick pattern.

Now you should keep this in mind that you cannot trade solely based on candlestick patterns. You need to combine candlestick patterns with 1-2 indicators so that you get confirmation. This way you can filter out false candlestick signals because there will be many false signals generated. Adding another indicator can reduce these false signals. You can add one more indicator and see if it increase the winrate and reduces the false signals more. If it does good. But don’t add too many indicators. It will only make you more confused. Keep your trading simple with as little indicators as possible. This means maximum number of indicators that you should use in your trading system is 2. More than 2 will not help. It will only make your screen cluttered with contradictory signals. You should also watch this video that shows 3 simple candlestick tricks that will increase the winrate.

Combining Candlestick Patterns With Fibonacci Levels

It is a good strategy to combine candlestick patterns with Fibonacci levels. Candlestick patterns and Fibonacci levels both are leading indicators. This will help you catch the big moves in the market ahead of the crowd. The way to combine them is to check if an important candlestick trend reversal pattern forms on an important fibonacci level. For example, 38.2% is an important fibo level. If you find an important candlestick pattern like the harami or the engulfing forming on this level, it means that the retracement is over and the trend is now going to resume. So look for a important trend reversal candlestick pattern forming on important fibonacci levels like 38.2%, 61.8% etc. Watch these videos on how to trade with fibonacci levels.

Another thing that you can do is add either MACD or RSI to your trading system. MACD is a good momentum indicator. So now your trading system has three indicators: Candlestick patterns, Fibonacci Levels and MACD. Check if you have got a winning trading system or not. MACD divergence is a good signal. If an important candlestick pattern forms closed to an important fibonacci levels and you have a divergence signal on MACD, you have a very high probability winning signal.

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