Candlestick charts are one currency trading candlesticks in forex the most powerful technical analysis tools in the trader’s toolkit. They are also one of the most prevalent. Most technical analysis programs use candlesticks as the default mode of charting. Used correctly, candlesticks can give a signal in advance of much other market action.
They can be a leading indicator of market activity. But familiarity doesn’t necessarily breed expertise. There are perhaps more than 100 individual candlesticks and candlestick patterns. This is a daunting amount of information for a trader to understand and apply.
As with most things, some candlestick patterns are more useful than others. Here, we will take a look at some of the most viable for stock traders. These are candlestick patterns that experience shows have the most relevance to making consistently profitable trading decisions. Used correctly, they should increase the accuracy of your predictions. For those not familiar with the details of candlestick charting, it’s important to go over the fundamentals. If the candle is green or white, it means the lower extreme is defined by the opening price and that the stock’s price rose during the period being charted.