Candlestick charts are one of the most powerful forex candle charts analysis tools in the trader’s toolkit. They are also one of the most prevalent.
Most technical analysis programs use candlesticks as the default mode of charting. Used correctly, candlesticks can give a signal in advance of much other market action. They can be a leading indicator of market activity. But familiarity doesn’t necessarily breed expertise.
There are perhaps more than 100 individual candlesticks and candlestick patterns. This is a daunting amount of information for a trader to understand and apply. As with most things, some candlestick patterns are more useful than others. Here, we will take a look at some of the most viable for stock traders.
These are candlestick patterns that experience shows have the most relevance to making consistently profitable trading decisions. Used correctly, they should increase the accuracy of your predictions. For those not familiar with the details of candlestick charting, it’s important to go over the fundamentals. If the candle is green or white, it means the lower extreme is defined by the opening price and that the stock’s price rose during the period being charted. If the candle is red or black, then the lower extreme identifies the closing price, and the stock fell during the period.
Candles may be created for any time period: Monthly, weekly, hourly or even a minute. About the Author Bramesh Bhandari is a proficient stock trader at Indian stock market. He also provides online tutoring on technical analysis to traders. Net Financial Charts is a financial market charting API for the .