The following is some reader Q&A following publication of Advanced Candestick Analysis (Part 1 of 2).
Great article and of high value, I am impressed man.
Only one thing if I have problem from time to time with is: BIAS.
My trading suffers whenever I form any BIAS whether its for gap fill, target or still worse in a given direction (including of trend).
Psychologically speaking BIAS is something hard for me to change and remains in my thinking overruling, the current right side of the chart. Undermines my objectivity while trading.
Whenever I remain BIAS free, I manage to exit on time from the market and also do not try to impose my thinking of BIAS on the market.
What I have found is to have Preference till the prices allows you to have, supported by volume (no demand or spike).
Test of ones own Preference with price and confirmed by volume OBV (I use Moving Average 3 of OBV(9) for the eminis).
For me then its easy to prefer the trend & remain with it, but when direction differs (retracement or pullback) then the price and vol action would invalidate my preference and allow me to be in neutral state of both position & mind.
As trend most often continues than not, I allow myself to be aggressive in prevailing trend direction or conservative with change in direction & of existing trend. The neutral position to observe how easy the candle bodies are formed on which side is also quite important.
I use Haikin Ashi candles on the lower time frame chart for this purpose.
Higher time frame head wick and tails with lower time frame candle pattern and vol action is quite rewarding. But during Trends this patterns are also formed when prices/direction are working through an area or popular fib levels (trend continuation) giving misleading but weak signals (vol) in opposite direction.