T2W Bot

Staff member
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Candlestick charts are widely used by traders around the world, as superficial demarcations between East and West are thankfully fading away.  While bar charts are still more popular because of sheer inertia, there is little doubt that candles provide much more information, even though both types of charts are based on the same prices.  Let?s take a look at the advantages of using candles when gauging the validity of intersections.
Traders make a big deal about prices breaking support and resistance lines, trendlines, moving averages and retracement or extension levels.  However, intersecting these lines on an intraday basis and closing outside them are two very different ball games. 
Benefits for Using Candlesticks
Let?s quickly review the reasons why traders should use candlestick charts for daily, weekly and hourly charts:

Candles make it easy to separate bullish periods from bearish periods.You can easily do that by looking at the different colors of the candles.
They...

Continue reading...
 
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kumarpal

Newbie
1 0
dear sir, i found this article very informative. will you be kind to explain in details the importance of long shadows- , the candlesticks to watch for reversals, and continuation patterns. thank you , kumarpal shah
 

timsk

Legendary member
7,601 2,376
kumarpal said:
dear sir, i found this article very informative. will you be kind to explain in details the importance of long shadows- , the candlesticks to watch for reversals, and continuation patterns. thank you , kumarpal shah
Hi kumarpal,
Welcome to T2W.
If you want to learn more about candlesticks and what they reveal about the fears and greed of traders and investors, then 'Japanese Candlestick Charting Techniques' by Steve Nison is the book for you. It's not cheap; the free option is to do a search on T2W as there will be a goodly amount of useful info here. This will get you started:
http://www.trade2win.com/boards/forumdisplay.php?f=123
If you really want to get your gloves off and dig deeper, then this is the nearest thread to the Holy Grail on T2W - in my view. It's not about candlesticks as such, after all - they don't tell you anything a bar chart doesn't tell you - the thread concerns the story that charts tell the viewer about what traders / investors are thinking, feeling, hoping and fearing. Enjoy!
http://www.trade2win.com/boards/showthread.php?t=11104
Tim.
 
 
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