Candlestick Investing - The Smart Traders Tool-set
Since their introduction not long ago Candlestick investing techniques have dominated
. I wouldn't hesitate to say that candlestick investing is the premier choice for all traders. In fact if you are still using a line or bar chart you are literally in the dark ages of charting technology.Candlestick Investing refers to how a person views a chart to make long or short term trading decisions. A line chart is simply a line that marks the closing price of the session. A bar chart prints the open, close, high and low but not quite like a candlestick chart.
The great thing about candlestick investing is that a candlestick chart is so intuitive. It's so intuitive in fact that there are literally dozens of names for the formation of 1 and up to even 4 or 5 candlesticks together - these names of these patterns give clues to what they represent. They also make it even easier to remember the pattern.
For example a morning star doji patter. When we think of the "morning" we think of the sunrise. A morning star doji candlestick pattern is represented by 3 candlesticks. The first is a continuation of the down trend. The second opens lower than the previous candlesticks close but fails to close much higher. This is the "Doji" in the candlestick pattern.
Next price gaps up a bit and price continues up closing beyond to at or beyond the first candlesticks real body. Kind of like a sunrise the morning star Doji is telling us that the bearish trend is over and a bullish trend just might be at hand.
Candlestick investing requires that you be aware that the forecast provided may only be for the short term, a careful risk plan and entry plan needs to be in place to take advantage of any potential move that may occur.
If you are going to learn how to trade from a candlestick investing point of view be sure to consider swing structure and other tools that will provide a more thorough approach to what price may be doing.
One of my favorite ways to apply candlestick investing techniques is through multiple time frames. I try and identify similar patterns in various time frames to find when they are in agreement.
The best part about learning how to use candlestick charts is that when you begin to learn the techniques you can with just a quick glance see exactly what price is doing, there's no guessing. Try it yourself and see learn just 1 or 2 patterns begin to look at candlestick charts regularly and you will likely be amazed.
Once you get familiar with some of the patterns you will with little effort recognize price strength or weakness "at a glance!" A key to large profits with low risk is being able to identify these very conditions.
If you currently trade, do yourself a favor and don't trade anymore until you understand how to use candlestick investing techniques. Visit our site and download a free manual, flash cards and more just for taking a look.
by: Mark Deaton Find Out How Is It Possible To Trade Forex For A Living Making money whilst online gambling - three definate requirements Earning Online with Various Methods Some Vital Information About Online Forex Trading Using loss for player strength - Online casino strategic tips Online Travel's Great Promises How To Make Money With Adsense Use the Power of e-Bay to Make Money Online Forex Buying and selling: What to Trade, When to Trade, and Find out how to Trade Easy And Effective Ways To Earn Massive Income Online Yourself Buying Wholesale Silver Jewelries And Then Jewelry Resell Online Email People Search Is A Greay Way To Find People Online Fulfill Your Financial Obligations with The Help of Online Debt Consolidation Loans