Candlestick Forex Patterns
My love affair with Candlesticks Charts
For most of my investing life, I was married to the bar chart – that taught me a vertical line indicates the highest and lowest prices of the day and everything else, plus a doodle on the left, announces the opening price and a squiggle of right announcing the closing price. It is an excellent illustration of what had happened, but gave no clue as to the mental strength of traders as a group that led to the price action that day.
Then one day, only a few years ago I was introduced to graphics Japanese candlesticks, which were introduced to this country only a couple of decades ago. What a wonderful revelation that was, to take forward Me this new style, but nevertheless, very old presentation of prices. For the first time, I was able to understand the mood of the traders when they took business decisions, and was even more fascinating to see the shorter time table frame are displayed on the screen.
The primary component of all trade human emotion is not rational decision making, more so in towns than in commodities. There is no better way yet devised to unlock the secret to understanding human emotions in the trade to see what showed in real time during market hours.
The graphics Chandeliers current price action in graphics dull and lifeless or reams of pure numbers. Rather, work more intuitive for humans in that show what is happening in tabular form, which recognize the eyes in an instant and that the brain interprets and understands. Even a ten year old child can understand the psychological makeup of the traders as a group when is shown a candlestick of S & P chart or a candlestick chart of the currency, for example, or when sitting next to you while watching prices unfold in time in real computer screen.
I can never return to the "old way" – the form of bar graph. Too much is missing there. Only the candles give you the full picture.
About the Author
Publishes investment advisory newsletter and Action Suggestions in the Dow 30, Forex, Gold, Silver, Crude Oil at http://www.candlewave.com/ Commodities Daily Report at http://www.commoditiesjunction.com/ sells Candelaabra technical analysis trend reversal system at http://www.candelaabra.com
Day Trading Forex – Intraday Candlestick Patterns