RSS Feed
June 8th, 2006 
Jason NOTE*** This post is part of an ongoing project to update my “How I Pick Stocks” page on the sidebar to the left. For every new section/update that I make to the page, I will post addition here as a post as well as amend the page itself so that all the information can be read together.
—————————————————————————————————————–
Knowledge of how to use candlestick charts is a must for trading in this day and age. I can hardly do the subject justice here, so I hope to merely point interested parties in the right direction.
The first and arguably most comprehensive material on the subject can be found in Steve Nisen’s Candlestick Charting Explained
You can get it from Amazon for a good rate, but if you want to know the basics for free, Check This Site Out.
The important thing to remember about candlestick charting is the market strength and direction preceding a candle. Practically all candlesticks are best used after an extended move to the upside or downside accompanied by very strong or very weak volume, depending on the signal. (This will be covered in more detail in my Color Coded Volume section).
Candlestick charting is completely useless in a tight, choppy market. Overlapping real bodies of candlesticks make most signals much weaker…this too can save you some money.
The main thing I look for is some kind of reversal signal at the end of an extended run in conjunction with the other indicators/techniques that I use.
Posted in 
