Well said. Whatever the thing, these are market behaviours, that have proved many times! Definately, they works!
As you took delivery trades, these things matters the most for you, cause, as long as time is took by candlestick or chart pattern to form, it will be that effective!
And also, in bigger TF’s, they are more simple to find and work with due to sufficient time to thought for trade and less volatility as compared to intraday (where trades are of few minutes even).
But there are strong psychology, behind most of the candlesticks and chart pattern, like in hammer, that day, price has gone up, then gone down in a single day, so what smart money want to depict here is that there is no reliability to price movement.
Also that day, whoever took trade, they will end with their stoploss.
And next day, the price will go up rapidly and surprisingly into trend! Now, many traders will not have courage to have trade again due to two reasons: (1) as in previous day, price has gone up and down in a same day, so next day price movement is less realible (2) price will move with volatility, so people will not have time to took trade or possibly due to stoploss area is big as they have to put stoploss in hammer’s low.
So like this, their are psychologies behind these candlesticks and chart patterns. Many traders got trapped! We have to see that market is designed as such to fool people’s.
In order to escape, we have to know what price want to do that time (during formation of these candlesticks and chart patterns), what smart money want to do that time, what psychology does generate in individual traders, and thus only, we can escape!
How ever, one can ignore to learn psychology behind it, but what i think is It is more better to have deep knowledge than just viewing candlesticks on chart and taking trade.