How to Invest Today

Candlestick investing has become the most used form of charting among all traders. I would go so far as to say this form of charting dominates trading the world over. In fact if you are using any other form of charting you are likely very “old school”

Candlestick Investing refers to how a person views a chart to make long or short term trading decisions. A line chart is simply a line that marks the closing price of the session. A bar chart prints the open, close, high and low but not quite like a candlestick chart.

The great thing about candlestick investing is that a candlestick chart is so intuitive. It’s so intuitive in fact that there are literally dozens of names for the formation of 1 and up to even 4 or 5 candlesticks together – these names of these patterns give clues to what they represent. They also make it even easier to remember the pattern.

Consider a morning star Doji candlestick pattern. What comes to mind when you think of “morning?” Sunrise right? A morning star doji pattern has 3 candlesticks.. The first one continues the bearish trend down, the second forms a doji star, literally a small plus sign or cross. This shows indecision or a loss of strength downward.

Next price opens with a little bit of a gap up and runs up to close well beyond the half way mark of the first candlesticks real body. The bullish nature has just kicked in and a full blown reversal has just printed. We now have a strong clue that the bears are done and for now at least the bulls are taking over.

When using candlestick investing techniques, be aware that the information you are getting may only provide short term insight, this is why we always recommend a multiple time frame approach.,

If you are going to dive in and learn candlestick investing techniques, be sure to study other forms of analysis that pinpoint price strength or weakness and pull these sources together for an even more accurate picture of what price is telling us.

I like to use multiple time frames to get consistent perspective on price strength and weakness. I then use candlestick patterns to help me pinpoint weakness or strength.

The best part about learning how to use candlestick charts is that when you begin to learn the techniques you can with just a quick glance see exactly what price is doing, there’s no guessing. Try it yourself and see learn just 1 or 2 patterns begin to look at candlestick charts regularly and you will likely be amazed.

Once you get familiar with some of the patterns you will with little effort recognize price strength or weakness “at a glance!” A key to large profits with low risk is being able to identify these very conditions.

If you trade now don’t even hesitate in learning these techniques now. You really shouldn’t trade again until you at least have some candlestick investing knowledge. You’re crazy to ignore this proven information.

Candlestick Investing is the “goto” tool for assessing and forecasting price action. If you want help in learning how to get good at this tool set visit this site for a ton of free downloads. http://www.candlestickgenius.com/Candlestick-Investing.html Unique version for reprint here: Candlestick Investing – How Its Done.