When Candlesticks are Different Among Forex Brokers, Can Traders Still Win?

Abstract

Different brokers have different candlesticks. As a result, analyzing forex becomes more difficult because candles in one broker cannot be validated by candles in another. Many specific candlestick patterns are difficult to generate for all brokers, so traders' chances of winning will be reduced. Some previous studies have focused on how to identify candlestick patterns and profit from certain candle chart patterns. However, they fail to consider the fact that certain patterns only appear under specific circumstances. In addition, previous researchers typically employ just one broker. This study contributes by taking a unique stance on FX trading by seeking to ascertain what would happen if a single candlestick pattern analysis were to be applied to other brokers who employ other types of candles as well as investigating whether traders can still win in the Forex market despite the challenges they confront. The EURUSD data is gathered from three local brokers in Indonesia. Twelve bullish and bearish candlestick patterns are applied to be analyzed and measured using net profit and validated using t-test statistics. As a result, the difference in the candle causes the difference in the appearance of the candle on the three brokers. Despite the variation between brokers, traders can still manage to make a profit using a single candlestick pattern for one-day trades. The Opening of White Marubozu candles can help traders in making significant profits for all brokers. Whilst for traders in specific brokers, the Closing Black Marubozu and Opening Black Marubozu candle patterns are beneficial.