Posted by: Livy | February 12, 2009

Candlestick Patterns and Conclusion to Charts

Candlestick Patterns

I personally prefer to combine the patterns you’ve seen with candlestick indicators. Candlesticks are price bars too, and they will generate these same exact patterns. Candlesticks, however, can take it to the next level and provide further indicators of bullish, bearish, and continuation signals. Drawing and explaining them all out when there is an excellent resource on the web would be an exercise in futility. Both of the website I’m going to refer you to are operated by the same people and they are excellent resources, even if you don’t subscribe to the services of the second one.

http://www.candlesticker.com THE authority for candlestick indicators.
http://www.americanbulls.com You can subscribe if you wish and they’ll filter out the indicators that you desire, or for free you can search individual stocks. They usually update it a few hours after the market closes.

Hopefully you’ve learned something about reading and creating charts for yourself and it can make you a more profitable.  The internet is a wealth of information and you will be able to find more in depth information simply by searching any of the concepts that we’ve covered. Your online broker should have solid charting tools, if not use http://www.stockcharts.com or download an application like Quote Tracker. http://www.quotetracker.com  The more information you have at your fingertips, the more likely you are to succeed. For reading all the way through, I have an important piece of information for you:

Patterns behave almost identically in micro AND macro environments. What does that mean? If you notice that a particular stock acts in a certain way over a six month period and you are able to use an indicator to identify when it’s going to happen, you can use the same tool over a six hour period!!! Day traders can go and back test a theory they have on a stock over years and years of historical data… then apply it in their intraday trading style.  Happy hunting,

Livy 2/3/09

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