Basics of Technical Analysis
Japanese Candlesticks 101
The first step to swing trading with technical analysis is learning to read Japanese candlesticks. At first glance the Japanese candlestick can seem very confusing to the new trader. These candlesticks are key components to our trading strategy, as they give us insight into what the markets buyers and sellers are thinking. After completing our lesson on Japanese candlesticks, you should have a much better understanding of what these candlesticks mean and how to read them on a stock chart.
Stock Charts for Beginners
The collection of candesticks over and extended period of time is known as a stock chart. Stock charts are used by technical traders both swing and day oriented, to identify certain patterns that can lead to a predictable price move. A stock chart with show the price action for a selected time frame, that can be 1 weeks, 1 year, or even over the last 10 years.
Now that we have an understanding of what Japanese Candlesticks are it's time to take a look at dual candlestick patterns. Meaning formations or signals made from two Japanese Candlesticks.