Candlestick patterns have become the single most accurate means of identifying the ever obscure current state of price action . By virtue of open, close, high, low and those relative to the previous bar candlestick charts are the best way for a trader to identify excellent trade opportunities. Here is an example of the amount of data that can be gleaned from just one spot in time on candlestick charts…
Realize that a candlestick pattern is simply a means of reading data on the chart. Whether you trade forex, stocks, options or futures it is a superior tool for technical analysis. Once you become familiar with the basic candlestick patterns you will quickly assimilate their meaning and easily interpret them.
The patterns are basically intuitive and the learning curve is small. There comes a point where you will recognize market sentiment without even identifying a specific candlestick pattern. No matter what system style or technique you may implement the fact is you will be that much more effective by making candlestick charts your tool of choice.
The alternatives or archaic to say the least, and downright ugly once you get used to using Japanese candlesticks. Candlestick charts are the most widely used for of charting for good reason. With a little practice and help, it is actually the most intuitive process for understanding current and future price action.
Using candlestick patterns always increases accuracy. The reason to increase accuracy is to increase profits. If you can get “more accurate” you can become more profitable.
Here’s a thought – What if you could glance at price action and get a feel for price direction instantly?
The fundamental difference between Japanese candlestick patterns and any other form of charting is simply that the candlesticks allow for immediate recognition of price direction and strength – if only for the short term.
If you’re looking at a daily chart this can be more long term but relative to the time frame you’re monitoring the assessment is generally short term based. We can look for additional patterns and other technical analysis to keep us in a more long term trading scenario.
Candlestick patterns are far and away the most intuitive, accurate means of determining price strength in any direction. Whether you trade stocks, options, forex or futures candlestick patterns should be the cornerstone of your toolbox for reading and determining any market forecast.
Amazingly here’s a great link about candlestick patterns great content for learning the basics of the candlestick patterns. If you want to learn more advanced stuff download my manual!