Candlestick analysis is the best tool for doing a detailed short-term trade analysis. Candlesticks help identify signals before they appear in the price chart and assist with short-term timing and setting limits. Candlesticks also strengthen or weaken more long-term trend signals.
Candlestick charts have been the most popular visualized tools that summarize price, currency movements, volumes, or values of technical indices. Using candlestick charts does not help you read price action to make trading decisions. You need to be able to read the story of price and use that story to find trade setups.
The development of a refined pre-processing approach to read candlestick patterns is essential. The second challenge comes from extracting representative characteristics from sub-charts since individuals prefer to identify local trends at first glance instead of finding the global pattern.
Candlesticks work great for commodities such as gold and oil, while giving good information and decisions for cryptocurrencies and forex. When trading CFDs, you can successfully use candlestick price analysis for stocks and index trading also.
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