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Candlestick Beauty And The Beast
Candlestick Beauty And The Beast
Candlestick Beauty And The Beast analysis is not only a technical analysis tool but also has a lot of philosophical underpinnings. It is a way to express and reflect your analytical skills in a much more visual and fun way. I will explore the topic of candlestick analysis in more depth in future articles but for now, I will provide some visuals to appreciate.
What do you think are the common traits among the best candlesticks?
Do they all portray strengths or weaknesses in the market? Is a bullish candlestick a sign of strength in the market while a bearish one is a sign of weakness? Are all of them equally powerful? Candlestick Beauty And The Beast These questions are all excellent questions and what I am about to share with you can explain these concepts more clearly.
The strength of a candlestick in my opinion is determined by its color. A bullish candlestick will be surrounded by multiple bullish trends like an uptrend or bullish streak while a bearish candlestick will be accompanied by a series of bearish trends like a downtrend or bearish string. Now having said that, it doesn’t mean that a candlestick with one trend is weaker than a candlestick with another. What it means is that they are going to be more predominant in the market. So you should start focusing on these strong trends when carrying out your analysis.
How can you buy good candles?
Color interpretation is not so cut and dried as mentioned earlier. It takes a bit of practice and a lot of intuition. You will be able to determine which trend is strongest depending on the color of the candle. But don’t think that this is all. As I have mentioned earlier, candlestick analysis is all about the color sequence. And here is how you can apply this knowledge to your trading and predictions.
So let us say that you see a candle that has broken free from the trend and you want to place a wager on its reversal. This might be possible depending on the color sequence that you see. However, the truth is that there are a lot of candlesticks that show the trend reversals on their own so the best thing to do is to look for the trend that is most predominant.
What do most beginners do wrong?
Most beginners start off looking for the reversal patterns on the x-axis and if they find one they are happy because this means that the trend will continue. However, this is not the best way to look at candlestick analysis. If you want to get into trading or prediction then you should be looking at the strength of the pattern. The strength of the pattern basically tells you the resistance levels where a reversal may occur. You need to take into account the size of the reversal as well.
To conclude, I would say that you can only know if a candlestick is beautiful in relation to what it represents by looking more deeply into its technical analysis of it. Candlestick Beauty And The Beast This is especially true if you want to get into the market and become successful. If you want to predict the movement of the market based on technical signals, you will have to understand more about candlestick analysis. This way, you will know what candlesticks really signify in relation to what they represent on the market.
Conclusion
There are a lot of resources that you can use to understand candlestick analysis better. Personally, I recommend the book “Forex Trading Machine”. I found this to be a very good book that helped me to learn more about candlesticks and the importance of interpreting the pattern and interpreting the candlesticks correctly. It might also interest you if I tell you that I personally made more than 8 times my money using the information provided in this book.
