21 Candle Sticks Everyone Should Know

Candlesticks are one of the most powerful technical analysis tools in the trader's toolkit. While candlestick charts date back to Japan in the 1700s, this form of charting did not become popular in the western world until the early 1990s. Since that time, they have become the default mode of charting for serious technical analysts replacing the open-high-low-close bar chart.

CANDLESTICK ANTICIPATES, INDICATORS FOLLOW TRENDLINES CONFIRM

In my trading, I try to integrate candlestick analysis, moving averages, Bollinger bands, price patterns (such as triangles), and indicators such as stochastics or CCI to reach decisions. I find the more information which is integrated, the more likely the decision is to be correct. In this book, I have chosen to combine moving averages, Bollinger bands, and two indicators, stochastics, and CCI on various charts. As we discuss individual candlesticks or candle patterns, I integrate these tools into the discussion. Hopefully, you will not only learn how to recognize candles from this book but also appreciate how you can combine them with the traditional tools of technical analysis.