Main disadvantages

As already mentioned, the recognition of various types of candlesticks and candlestick patterns on real charts is not without subjectivity, which can be considered a weak point of candlestick analysis, although the same drawback is inherent in all other technical tools. On the other hand, subjectivity can play into your hands, because, gaining experience, you yourself will be able to determine which candlestick signals work best in your particular market, and, accordingly, you will have an advantage over those who did not spend on studying market specifics so much time and effort. Certain difficulties are also associated with the fact that in order to form a candle, you need to know its closing price, which will be discussed below. Therefore, one has to either wait for this price, or react to the received signal in advance, when the candle is still forming. Or you may prefer to postpone the decision at all until the next open price appears in order to make sure that the signal is reliable. This feature of candlestick charts is also not something unique: many technical analysis systems rely on closing prices, especially those built on the basis of moving averages. The operation of such systems is one of the reasons why a surge in trading activity is often observed in the last minutes of exchange sessions. Sometimes I don't wait until the end of the trade to check for a signal on the daily chart, but instead check the hourly candlestick chart. Let's say a bullish candlestick pattern appears on the daily chart, but in order to complete it, you need to know at what level the exchange session will end. If the main market trend during this period is up, and I also notice a bullish signal on the hourly candlestick chart, then I make a purchase without waiting for the daily close price. Finally, another disadvantage of candlestick analysis is that it is impossible to determine the purpose of the price movement with its help. To do this, you either have to use other technical tools, such as support and resistance levels or Fibonacci retracement levels, or, opening positions on candlestick signals, keep them open until opposite signals appear. In any case, it is better to use candlestick analysis together with other technical tools, always taking into account the general situation that is developing on the market. Candles provide a lot of useful information, but sometimes they still do not work: in technical analysis, you cannot achieve 100% accuracy of forecasts. Before I continue with the story of Japanese candlesticks, especially for newcomers to trading, I will briefly dwell on technical analysis as such, but I will not go into details and refer everyone who is interested in them to John Murphy's excellent book "Technical Analysis of the Futures Markets" (Technical Analysis). of the Futures Markets) [2] . If this topic is already familiar to you, then you can skip the next few pages, since they have nothing to do with further presentation.