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Candlestick Day Trading
A common perception of Candlestick analysis is that it applies to day by day trading or even longer time frames. However, Candlestick day trading is possible by simply shortening the Candlestick time frame. While one can construct Candlestick stock charts based on a monthly, weekly, or daily time frame traders also use Candlestick charts based time frames of as little as an hour or even five minutes.
Candlestick patterns have provided profits for traders ever since the days of the Samurai in ancient Japan. Because commodity , options, and stock price patterns repeat over time it is possible to use the front part of the pattern to predict the back half. Candlestick signals are based upon market experience thus it is just as possible to use Candlestick pattern formations to predict very short term stock price movement as it is to predict longer term movement. A day trader can search for market volatility in stocks and then follow the stock in Candlestick day trading in order to predict market trends , market reversal , or the next market rally .
Candlestick day trading works much like other types of day trading based upon technical analysis . The market tends to rapidly discount fundamentals as they become known. Thus traders use fundamental analysis to remain aware of the general limits and eventual direction of stock prices but use technical analysis tools to direct minute by minute trading. Because of the ability of Candlestick signals to illuminate market sentiment in both long and short time frames day traders use a modern version of an ancient rice trading technical analysis tool to successfully trade stocks online . Using Candlestick trading techniques on a daily basis allows the trader to insulate himself against the twin trading psychology demons of fear and greed. Because Candlestick day trading is statistically based it offers the trader high probability choices and not psychologically confusing stock tips or stock market news .
Candlestick day trading uses signals such as the Doji Candlestick. When upward or downward market trends are about to reverse there is often a period of confusion in the market. Some traders expect the trend to continue and place trades in the direction of the trend and others place trades in the contrary direction. Fundamentalists commonly bring the stock price back to the starting point at the end of a time period such as a day or even less. The Doji Candlestick is a good means of identifying market indecision. It is a very short candlestick with, often, very long shadows. This candlestick reflects the fact that a stock may be trading up and down from a base price but keeps returning to that price, as the market is confused. In Candlestick day trading this candlestick indicates that a now-confused trend is about to reverse.
2. A common perception of Candlestick
analysis is that it applies to day by day
trading or even longer time frames.
www.CandlestickForums.com
3. However, Candlestick day trading is
possible by simply shortening the
Candlestick time frame.
www.CandlestickForums.com
4. While one can construct Candlestick
stock charts based on a
monthly, weekly, or daily time frame
traders also use Candlestick charts based
time frames of as little as an hour or
even five minutes.
www.CandlestickForums.com
5. Candlestick patterns have provided
profits for traders ever since the days of
the Samurai in ancient Japan.
www.CandlestickForums.com
6. Because commodity , options, and stock
price patterns repeat over time it is
possible to use the front part of the
pattern to predict the back half.
www.CandlestickForums.com
7. Candlestick signals are based upon
market experience thus it is just as
possible to use Candlestick pattern
formations to predict very short term
stock price movement as it is to predict
longer term movement.
www.CandlestickForums.com
8. A day trader can search for market
volatility in stocks and then follow the
stock in Candlestick day trading in order
to predict market trends , market
reversal , or the next market rally .
www.CandlestickForums.com
9. Candlestick day trading works much like
other types of day trading based upon
technical analysis . The market tends to
rapidly discount fundamentals as they
become known.
www.CandlestickForums.com
10. Thus traders use fundamental analysis to
remain aware of the general limits and
eventual direction of stock prices but
use technical analysis tools to direct
minute by minute trading.
www.CandlestickForums.com
11. Because of the ability of Candlestick
signals to illuminate market sentiment in
both long and short time frames day
traders use a modern version of an
ancient rice trading technical analysis
tool to successfully trade stocks online .
www.CandlestickForums.com
12. Using Candlestick trading techniques on
a daily basis allows the trader to insulate
himself against the twin trading
psychology demons of fear and greed.
www.CandlestickForums.com
13. Because Candlestick day trading is
statistically based it offers the trader
high probability choices and not
psychologically confusing stock tips or
stock market news .
www.CandlestickForums.com
14. Candlestick day trading uses signals such
as the Doji Candlestick.
www.CandlestickForums.com
15. When upward or downward market
trends are about to reverse there is
often a period of confusion in the
market.
www.CandlestickForums.com
16. Some traders expect the trend to
continue and place trades in the
direction of the trend and others place
trades in the contrary direction.
www.CandlestickForums.com
17. Fundamentalists commonly bring the
stock price back to the starting point at
the end of a time period such as a day or
even less.
www.CandlestickForums.com
18. The Doji Candlestick is a good means of
identifying market indecision.
www.CandlestickForums.com
19. It is a very short candlestick with, often,
very long shadows.
www.CandlestickForums.com
20. This candlestick reflects the fact that a
stock may be trading up and down from
a base price but keeps returning to that
price, as the market is confused.
www.CandlestickForums.com
21. In Candlestick day trading this
candlestick indicates that a now-
confused trend is about to reverse.
www.CandlestickForums.com
22. Using the Doji Candlestick and other
Candlestick pattern formations a trader
can succeed in Candlestick day trading
as well as in trading stocks in the longer
term.
www.CandlestickForums.com
