Candlestick Investing – Its all about the Patterns

Candlestick investing is the premier method for making trading decisions in any market. If you are reading this article it is likely you are new to using candlestick patterns for investing so listen closely because this is very important.

When you employ candlestick investing techniques you are using a series of price bars that together form a pattern that you can identify to forecast price direction even if only for the short term. With a little practice these high profit patterns will become intuitive.

Candlestick investing is likely the most intuitive means of identifying price direction there is once you get the hang of it. When you learn the candlestick investing patterns you will be able to immediately recognize strength or weakness in any time frame with incredible ease.

It doesn’t matter if you are looking at a 5 minute chart or a daily chart the strength or weakness will show through when you learn to apply proper candlestick investing techniques.

As a trader you have several options regarding how you view a price chart. You can use a bar chart, a line chart or a candlestick chart. Take a look at all of them and you will see that the strength and weakness literately jumps out at you when you master the skill set.

Candlestick investing allows for the simple easy methods for defining exactly what price is doing right now. When you learn simple support and resistance techniques and combine that knowledge with candlestick investing you get a winning combination of analysis.

One of the most popular patterns is the doji star. Its really not a pattern actually its the one pattern that requires only 1 single candlestick. When this candlestick reveals itself it is telling us to be aware that what ever trend was happening is likely over for now.

One of my favorite set-ups is when price is slowing from an uptrend and as it hits a resistance level a doji star forms at a top. This means that a there is just about a 99% chance price will reverse. This is 1 small example of the power of mastering candlestick investing.

If you talk to professional traders all over the world now you will find that 99% of them use candlestick investing patterns. These powerful patterns have only been available to us since the 80’s and now not 1 charting platform is without the option of using them. Its hard to believe we have only had access to them since Steve Nisan brought them over in the 80’s.

So if you are a brand new trader or you have been trading for 25 years you are likely not the last one to make the switch. You are most definitely not the first but its never to late to jump on the band wagon.

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