Indicators: Dominant Candle

New comment
 

Dominant Candle:

Dominant Candle is a a two candlestick set where the wicks intersect each other but body of the candles are either gapped up, gapped down or equal

Dominant Candle

Author: Rajesh Kumar Nait

 
Thanks for sharing Rajesh , Very interesting observation Is there a description or further detail/study of the significance of this pattern ? 
 
linfo2 #:
Thanks for sharing Rajesh , Very interesting observation Is there a description or further detail/study of the significance of this pattern ? 

My pleasure. its subject of research how you wish to use it. This is usually grown and used by Malaysian traders and its usually seen after a breakout as a confirmation.

 
Rajesh Kumar Nait #:

My pleasure. its subject of research how you wish to use it. This is usually grown and used by Malaysian traders and its usually seen after a breakout as a confirmation.

Thanks yes it does appear to be a good confirmation indicator , thanks again 

 

After previous experiences, this type of candle is an illusion. It may succeed once and fail 66 times.

The funny thing is, it works when we move past it, meaning when it becomes part of the past archive, but it fails when we are experiencing it in real-time and trying to apply it. 😀


 
micllAblen #:

After previous experiences, this type of candle is an illusion. It may succeed once and fail 66 times.

The funny thing is, it works when we move past it, meaning when it becomes part of the past archive, but it fails when we are experiencing it in real-time and trying to apply it. 😀

Its an illusion with everything you try as a beginner in trading,

In backtest even engulfing seems to be working, but you never know data when you test it in last 1 year of chart.

Must follow these steps before using any system

1. Find Cause such as trend or any signal your strategy gives such as ABC wave.

2. Validate the cause - by any means such as breakout of any structure ABC confirms the structure, the structure made ABC wave is not a validated structure.

3. Enter after successful validation

4. Find Exit

Dominant candle is used mostly for point 2 (validation)

New comment