Understanding Signals/Candlesticks

[BigSimon]

Could anyone recommend a book, article or website which talks you through the different signals traders should pick up on when CFD trading?

 

[tomorton]

Take a look at http://thepatternsite.com/index.html by Thomas Bulkowski. He's a leading author and unusually rigorous authority on candlesticks etc. Treat his statistics re frequency and success rates of formations he talks about with latitude - his studies were almost certainly carried out some years ago and in different markets to what you would be trading.

 

[Waikikijason]

Could anyone recommend a book, article or website which talks you through the different signals traders should pick up on when CFD trading? [emoji106]

I recommend The Candlestick Course by Steve Nison. He is the one who introduced candles to the west. And he has been teaching for many many years.

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[Dowser]

Believe it or not, there is a 'Candlestick Charting For Dummies' book. It's pretty good if your just starting out.

 

[dbphoenix]

Could anyone recommend a book, article or website which talks you through the different signals traders should pick up on when CFD trading?

You can save yourself a lot of time and frustration by ignoring the whole candlestick thing. Traders have bought into it for a variety of reasons, but the fact remains that there is no evidence of statistical significance to these patterns, at least in terms of being able to predict anything. A simple "statistical significance of candlestick patterns" search on Google will be enlightening, particularly if one focuses on studies that have been made within the last ten years, as opposed to twenty or more.

This statement will of course enflame a number of people, but if you do nothing more than your own research (which won't take long) and avoid taking anybody's word for anything, you should have much less trouble finding the right path.

 

[Quantt]

You can save yourself a lot of time and frustration by ignoring the whole candlestick thing. Traders have bought into it for a variety of reasons, but the fact remains that there is no evidence of statistical significance to these patterns, at least in terms of being able to predict anything. A simple "statistical significance of candlestick patterns" search on Google will be enlightening, particularly if one focuses on studies that have been made within the last ten years, as opposed to twenty or more.

This statement will of course enflame a number of people, but if you do nothing more than your own research (which won't take long) and avoid taking anybody's word for anything, you should have much less trouble finding the right path.

I completely agree with you and your great advice!