I like candle charts, but probably not just because of what they show but because it's what I 'grew up' on (I really prefer bar charts for price action trading). Most people use candles though, so it seems like a good topic to talk about.
This is probably going to be a long post on Candles so I'm going to split it up into much smaller chunks and post them separately.
I wouldn't consider myself a weeb(ette?), but I do like some of the Japanese mythology when it comes to trading, especially when describing the stock market in martial terms. The mythology is full of heroic battles between the bulls and the bears, the constant push and pull of two opposing armies - it helps to visualise how market forces work.
The problem with candle formations is most people don't really understand them, or use them properly. Ok, it's a bold statement, but I'd like to share a few things I've learned about candles that'll hopefully help you in your trading, such as -
- All candle formations are the same pattern when viewed over different time periods.
- How to use longer term candles to trade shorter time periods with higher accuracy
- Common misconceptions and mistakes that all retail traders make when using candles
There are two candle patterns, reversals and ranging. I don't mean two different types of patterns, I literally mean two patterns. The market is either ranging or trending and the candle patterns either tell you the market trend has changed direction (reversal pattern) or the market is ranging (indecision).
So stay tuned for some hidden secrets about candlesticks that 'they' don't want you to know ! (shameless clickbait).
Hey, if some whales can earn $400 a post for single line articles then I need to be spacing stuff out more :-)
In my next article I'll explain how candle patterns are formed, why everyone sees different candle patterns on the same chart, and why you shouldn't trust other peoples predictions based on them.
Header image : independent.co.uk
Chart image : babypips.com
Bull and Bear : wikipedia.org
Images found via Google image search, no affiliation
About me -
I'm a full time financial trader, mostly in Forex and Commodities. I write for fun and try to help beginner traders get started, avoiding all the mistakes that I made. I'm always happy to chat or discuss ideas so please just give me a shout in the comments !
I'm currently trying to build up SP but everything I earn from Steemit is donated to a Steemit charity or worthy user.