| As a new trader, the first think that you should | | | | going to reverse itself or continue. |
| master is how to read the different charts. There | | | | These candlestick patterns have names like the dojis, |
| are a number of chart types like the bar charts, the | | | | marabozus, haramis, hammers, spinning tops, shooting |
| point and figure charts and the candlestick charts. So | | | | stars, engulfing patterns and so on. These names |
| where should you start with. | | | | make it easier for a trader to spot and identify these |
| You should start by trying to learn and understand | | | | candlestick patterns and know in advance what type |
| candlestick charts. Candlestick charts and the bar | | | | of a trend reversal or a trend continuation is possible. |
| charts have a few similarities but candlestick charts | | | | In case of bar charts, there are no patterns that can |
| have much more than that. In fact candlestick charts | | | | be used to predict trend reversal or trend |
| are much more superior than the bar charts. The | | | | continuation. So whatever, it should be clear to you |
| most important reasons is aesthetic appeal of | | | | now that candlestick charts are a much superior |
| candlestick charts. Bar charts are dull to look at while | | | | arsenal in your trading tool that you must master in |
| candlestick charts are colorful and represent the price | | | | order to understand the price action. |
| action in terms of the bullish and bearish candles. | | | | There are traders who combine technical analysis |
| You can choose any color for the bullish candle and | | | | with candlestick charting patterns. For example, you |
| the bearish candle. Mostly the bullish candle is colored | | | | can use the RSI with candlestick patterns to confirm |
| white and the bearish candle is colored black. This | | | | a trading signals, you can use a stochastics indicator |
| coloring can give you a vivid picture of the type of | | | | with candlestick patterns to confirm you trading |
| price action that has been taking place in the market. | | | | signals. |
| In case of bar charts there is no such aesthetic | | | | Without learning these essential tools, you will be |
| representation. This makes them dull and difficult to | | | | always at the mercy of trading signals that you have |
| unlock the intricacies of the price action. | | | | no understanding about. Trading with those signals will |
| In case of candlesticks, there are many candlestick | | | | only result in one losing trade after another. But once, |
| patterns that have been proven again and again to | | | | you master candlestick charting and technical analysis, |
| herald impending trend reversals as well as the trend | | | | you will be able to understand how to confirm these |
| continuations. It is very important for a trader trading | | | | trading signals and make better and more profitable |
| a trend to know before hand whether the trend is | | | | trades! |