TraderPlanet's Quick Guide to Candlesticks
Like any other aspect of trading, using candlestick charts won’t guarantee profits or instant trading success. You will still have to do your analytical work when you use candlesticks, you will still have to make tough trading decisions, you will still have to manage your trades and your account carefully to avoid risks or exposure beyond your capability to control it.
But, using the same open, high, low, close price data available to all traders using all kinds of charts and methods, candlesticks will provide you with a better visual picture of what is happening in a market during a specific period of time. With a clearer view of the dynamics of market movement within that period, you can interpret traders’ reactions to various price levels and make decisions about how you might respond to what the charts are telling you.
Candlesticks are a relatively new approach to Western traders, but the speed at which they have become perhaps the most popular way to look at markets and charts today attests to the value traders have found in them. For many traders who have become familiar with the various candlestick patterns and the nuances of each of them, there will be no going back to the traditional old bar charts any time soon.
Find out more about Japanese candlesticks in this new Ebook which also includes chapters discussing:
- Candlestick Patterns
- Reversal Patterns
- Continuation Patterns