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Candlestick Investing How Its Done

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 line or bar chart you are literally the dark ages charting technology.

Candlestick Investing refers to how person views chart to make long or short term trading decisions. A line chart is simply line that marks the closing price the session. A bar chart prints the open close high & low but not quite like candlestick chart.

The great thing about candlestick investing is that candlestick chart is so intuitive. It s so intuitive fact that there are literally dozens names for the formation 1 & up to even 4 or 5 candlesticks together these names these patterns give clues to what they represent. They also make even easier to remember the pattern.

Consider morning star Doji candlestick pattern. What comes to mind when you think morning? Sunrise right? A morning star doji pattern has 3 candlesticks.. The first one continues the bearish trend down the second forms doji star literally small plus sign or cross. This shows indecision or loss strength downward.

Next price opens with little bit gap up & runs up to close well beyond the half way mark the first candlesticks real body. The bullish nature has just kicked & full blown reversal has just printed. We now have strong clue that the bears are done & for now at least the bulls are taking over.

When using candlestick investing techniques be aware that the information you are getting may only provide short term insight this is why we always recommend multiple time frame approach.

In attempting to pursue candlestick investing strategy be sure to always look at price & swing structure first & develop thorough plan before you start trading.

I teach & practice using candlestick investing techniques through multiple time frames. This gives me key perspective identifying multi-time-frame agreement that usually leads to larger moves & more money.

An important component the use candlestick investing techniques is that with just look at chart trader can instantly see exactly what s happening. It s like the candlesticks themselves are literally telling you what s happening. Kind like happy face or sad face you instantly know something is or isn t wrong.

Once you begin to recognize even the simplest patterns you will quickly be able to identify trade opportunity. Proper identification these patterns is your key to large low risk profits.

If you trade now don t even hesitate learning these techniques now. You really shouldn t trade again until you at least have some candlestick investing knowledge. You re crazy to ignore this proven information.

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