Monday, November 18, 2013

Candle stick charts

 Look at the long wicks that are present on the candles sticks. This is a key sign of hesitation in the market, with a battle of sellers and buyers.  Traditional technical analysis of traders would use these candle patterns for signals to go long or short, buying at the start of the new emerging trend, and in many cases these work out and become a winning trade. Traders will look for reversal patterns to place a trade.
  Most traders need to use a stop market order as a stop loss because it is used to predefine the maximum loss one is willing to take on any given trade. This is why candle stick chart patterns are good to use. For a long position a "sell stop market" would be placed below the market, and for a short sale, a "buy-to-cover stop market" would go above the market. Once the trade is in place, stops can then be used in the trade to manage profits. Especially when trading reversal patterns from candles.
Stock and Forex candle Stick Patterns