Pharaoh
Brigadier General
- Messages
- 20,310
If you compare the charts of the markets before computers and after, you can see the difference. Markets change and approaches to analysis change. Most of the traders who have successfully traded on the floor in the pits since the advent of the Internet have failed to grasp the new reality of the markets.
P.S. I recommend watching the documentary "Floored" 2013
Nonetheless, I see no reason to think a few dojis in a row aren't a clear sign of market uncertainty (or total boredom - but only on the slowest trading days). Faster automated trading changes many things, but can't change everything. Although one shouldn't bury a chart in indicators, any indicators, from the oldest to the newest really needs confirmation from a second indicator before one pulls the trigger. Pure candlestick trading worked well when few people knew or understood candlesticks. Like all indicators, as more people learn about it, some of them will use those to set up surprises for those who trade solely from a single indicator. Putting your stop 5 pips past a blatantly obvious support or resistance line once was a great idea, but now is a great way to get the stop triggered. Still, this doesn't mean that support or resistance line can just be ignored solely because it's old school.