Successful Trading with Candlesticks Next>>>>

When you open any investment book or magazine you notice charts filled with hundreds of little green and red bars. But know you will know what these bars mean and how to use them.  To start with, simply think: “Green = Up, Red = Down. They’re candlesticks.

Millions of trade decisions are made by simply analyzing these candlesticks. The main reasons are their simplicity and, of course, their profitability. Here I’m going to explain some of the most basic candlestick signals which can be applied to any stock, currency or commodity!

So what’s the advantage? Candlestick charting is one of the oldest methods of technical analysis, reputedly invented by the Japanese over 100 years ago and continues to be widely used today. The key to its appeal lies in the discipline’s ability to give a clear visual representation of the price action during the period, leading to easy-to-recognize pattern recognition.

One of the best features of candlestick charting in general is the visual appeal and readability. You can glance at a candlestick chart and quickly gain an understanding of what’s going on with the price of a security. You can also tell whether sellers or buyers have dominated a given day, and get a sense of how the price is trending.

You can also easily spot the opening and closing price for a security on a candlestick chart. These price levels can be very important areas of sup- port and resistance from day to day, and knowing where they are can be extremely helpful, especially for short-term traders.

Candlestick charts also feature specific patterns that you can identify and use to decide when it’s time to buy, sell, or wait on a trade or investment. These patterns can be a real boon to your work with securities, and you can combine them with other technical indicators for even more reliable results.

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