Trading False Signals with Candlesticks

A 'false signal' in trading is any trading signal that does not result in the expected or desired outcome. So, for example, a bullish doji that does not result in a bullish reversal.

To effectively trade false signals using candlesticks one has to have accurate backtesting data of candlesticks to know which candles will result in the desired result and which won'For example in backtesting if, for example the historical data given to us using the Backtesting portion of CandlePRO. For example in backtesting if you see a TP/SL that has a win % under 50% that tells us that TP/SL combination loses more often than it wins, so a trade in the opposite direction as forecast will win more often that it loses. So a TP/SL with a win % of 20% in backtesting would have a win % of 80% if taken in the opposite direction.

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  1. Ali
    November 26, 2014 at 12:47Reply

    I love to trade with candlestick strategy it is really great.

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