Are candlestick patterns overrated?

[Wind_FURY]

Basically any technical indicator is overrated
~snip~

It's not, and I think the word "overrated" is the wrong word to use. Because like ANY skill, to make Technical Analysis very effective for the user, it will take thousands of hours of practice, and "the gift". Simply, there are some people who are going to be more skillful than others in Technical Analysis. The earlier you know if you don't have "the gift", better for you to start using another strategy, BUY the DIP and HODL.

Got to disagree with that, and overrated is exactly the right word to use here, furthermore technical analysis in my opinion is not just any other skill and won't necessarily make you a better trader or even make you better at using those technical indicators to get better outcome, they're just merely a tool for you to use to get better at predicting probability of what happens next with the chart you're using, and by better I mean maybe 10-20% more than a person without any knowledge about charting and how technical analysis works.

It's merely an opinion. The traders who have been making the profit enough to make them professionals would definitely laugh and disagree with using the word "overrated". It's probably correct to say it's "overrated" for the plebs like us who couldn't use Technical Analysis properly.

Now if someone really put some real time into some other skill like fixing car engines instead for instance they probably could increase their chance of fixing cars to over 90%, can you get even get close to 90% success rate in trading with TA?

I already said that it doesn't word for everyone because, it's a skill that requires thousands of hours of practice, and "the gift". Ask yourself, and be honest, if you have "the gift". If you don't have it, just BUY the DIP and HODL.

[sulendra12]

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.

Those youtubers probably do it for sake of views. But believe it that they learn about TA and candlestick patterns in order to analyze every coin they encounter. In both cryptocurrency trading and stock market are really useful to use this, I don't think it's overrated at 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?

If those youtubers didn't say anything about that, it doesn't mean it's relevant, still many people uses it and they have really great time with it. People have different thoughts about each strategies and it's up to you to believe which side is the best.

[gunhell16]

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?

This is all I can tell you, dude, you shouldn't believe the influencers on youtube who supposedly teach about how to read a candlestick, because out of 100% maybe only 1% of them are actually telling the truth because almost most of the influencers that this is the only catch is views. So no matter what you look for in the things you want to hear and see in them, you won't really see it.

In short, you are just wasting time, you can only have an idea but what the content creator said, you should not believe 100%, you should analyze it first before you believe it.

If so, it is better to have your own experience so that at least you yourself can say what you should do so that you can understand the meaning of the movement of the candlesticks.

[libert19]

You should stick to what works for you, and if you don't know if it works or not - try it first rather than basing on other people, you don't know their whole story anyway.

[blue_hurricanger]

snip
It's merely an opinion. The traders who have been making the profit enough to make them professionals would definitely laugh and disagree with using the word "overrated". It's probably correct to say it's "overrated" for the plebs like us who couldn't use Technical Analysis properly.

I do wonder if all those traders who called themself at the professional level hit that level thanks to Technical Analysis aka "candlestick patterns overrated" or just by luck and insider's news/connection. From what I understood, people called candlestick patterns overrated mainly because of the amount of hype for it. Some traders thought being good at Technical Analysis is enough to make 10x of their initial capital, not by the luck of investing early or thanks to the bull market time.

If it took too much time to properly use it and anyone who failed despite full-on Technical Analysis, is considered as 'noob', 'git gud' or 'not the true master of Technical Analysis' then I think I have to disagree. Better spend your time somewhere else. Like understanding the difference from layer 1 to layer 2, many terms in crypto to know which one is better when investing in a new coin. Yes, candlestick patterns are overrated for crypto.

[goldkingcoiner]

Candlestick patterns are not some subjective study of the ups and downs of the market but rather reflect real numbers and actual market sentiment. So why you or anyone would consider them overrated is a bit of a mystery to me. But that being said, you cannot view candlestick patterns without looking at the bigger picture of whats happening to the volume, the rsi, and of course most importantly the news related to the investment which the candlesticks are reflecting. Looking at candlesticks alone may be not ideal or even a mistake that you could lose all your money on but its definitely a good visual metric on whats currently happening. If I see a hgue dump then I know there will be some bad news behind it.

[gabbie2010]

How can it be overrated ? Everything in trading depends on candlesticks. By looking at the candlestick charts, you can determine when it is good to invest or when it is bad.  How would we get the signals if there was no candlestick? I think this question has no logic because trading analysis fully depending on candle stick . So I can't agree with that it's overrated.

Candlesticks are very important, this is our basis for our indicators and with this, you can also know when to buy and sell. This is not overrated and actually the purpose of the candlesticks missed by most of the trader because they are too focus with the other indicators, and they forgot the fundamental of other indicators. Candlesticks works perfectly on it’s purpose, better to focus on this as well.

Personally I used candlestick patterns for forex trading it is the best technical indicator particularly when using higher timeframe where there is less noise with a naked chart at the close of each candlestick it always give a clue for the next line of Price Action, it's either price continuation or reversal with the help of RSI indicator for indentifing overbought and oversold, I also uses trend lines for breakouts after the candlestick had indicate a likely price continuation or reversal, I don't rely on lagging indicators for trading because of their false and inaccurate signals in most cases.

[Fatunad]

How can it be overrated ? Everything in trading depends on candlesticks. By looking at the candlestick charts, you can determine when it is good to invest or when it is bad.  How would we get the signals if there was no candlestick? I think this question has no logic because trading analysis fully depending on candle stick . So I can't agree with that it's overrated.

Candlesticks are very important, this is our basis for our indicators and with this, you can also know when to buy and sell. This is not overrated and actually the purpose of the candlesticks missed by most of the trader because they are too focus with the other indicators, and they forgot the fundamental of other indicators. Candlesticks works perfectly on it’s purpose, better to focus on this as well.

Personally I used candlestick patterns for forex trading it is the best technical indicator particularly when using higher timeframe where there is less noise with a naked chart at the close of each candlestick it always give a clue for the next line of Price Action, it's either price continuation or reversal with the help of RSI indicator for indentifing overbought and oversold, I also uses trend lines for breakouts after the candlestick had indicate a likely price continuation or reversal, I don't rely on lagging indicators for trading because of their false and inaccurate signals in most cases.

Not only on forex but also in other markets as well which candlestick patterns is really that relevant and the main thing you would able to deal when you do step your foot whatever market you would really be into.
Since technical indicators are your first tools on making use since not all would really be that anytime we do have some news which we would really be able to deal with.
Patterns arent that overrated but rather its mainly needed because you have to deal with technical analysis most of the time which means it would really be that relevant that
you should know on how to read up these candle patterns so that you do have the idea at least when you do make out decisions on your investment.

[justdimin]

I do wonder if all those traders who called themself at the professional level hit that level thanks to Technical Analysis aka "candlestick patterns overrated" or just by luck and insider's news/connection. From what I understood, people called candlestick patterns overrated mainly because of the amount of hype for it. Some traders thought being good at Technical Analysis is enough to make 10x of their initial capital, not by the luck of investing early or thanks to the bull market time.

I do believe that it is luck+insider info together. I mean even my friend who is not even rich ended up with some insider info once and turned his 160 dollars into over 2k+ dollars, all thanks to knowing what the project was planning on doing next, and that was super easy. Think about being a literal billionaire and having all the people in the world trying to impress you to make more money, they would end up with telling you all the secrets in order to make some profit.

This is why I believe that we should be considering the current situation as a big deal for us, since we could be involved as much as they can in the crypto world, when we couldn't in the wall street world.

[Wakate]

How can it be overrated ? Everything in trading depends on candlesticks. By looking at the candlestick charts, you can determine when it is good to invest or when it is bad.  How would we get the signals if there was no candlestick? I think this question has no logic because trading analysis fully depending on candle stick . So I can't agree with that it's overrated.

One thing some traders does not know is that the market can not be easily traded using one pattern which can bring losses. When I started trading I learnt the candle stick pattern but I still get confused of the market when I will want to put my candle stick knowledge in use. Nothing works in isolation so we just need to couple everything about trading in one use.

Candle stick pattern can be combined to indicators to get some good understanding about what could be the possible movement of the market. All these work hand in hand to get the best results from the market since multiple tools is what could give us a better possible direction of the market.

[Quidat]

How can it be overrated ? Everything in trading depends on candlesticks. By looking at the candlestick charts, you can determine when it is good to invest or when it is bad.  How would we get the signals if there was no candlestick? I think this question has no logic because trading analysis fully depending on candle stick . So I can't agree with that it's overrated.

One thing some traders does not know is that the market can not be easily traded using one pattern which can bring losses. When I started trading I learnt the candle stick pattern but I still get confused of the market when I will want to put my candle stick knowledge in use. Nothing works in isolation so we just need to couple everything about trading in one use.

Candle stick pattern can be combined to indicators to get some good understanding about what could be the possible movement of the market. All these work hand in hand to get the best results from the market since multiple tools is what could give us a better possible direction of the market.

Sooner or later they would really realize those things on which if they do tend to engage with trading then those patterns would really be helpful specially if you do know on how to understand it.
They arent overrated but rather its mainly needed because you would really be having the idea on what to do if you do know on how to read up candle patterns.You cant just make out outright decision
in related into your trading position if you dont even consider on what it is forming although its not really that a reliable thing most of the time but it is really better compared when you arent
using something and just like on what others been saying above that it is really useful and you would find it for it to be mainly needed.