Candlestick Charting For Dummies®

There’s No Definite Right or Wrong Opinion of a Chart

Because charting combines many factors and approaches, two traders or analysts can view a chart and have two completely different opinions about whether the chart is bullish or bearish. The reason for the differing points of view may be as simple as the time frame that each trader has in mind for a trade, or it can be something as unusual as one of the traders holding a bias about a particular stock or market depicted on a chart. Regardless of the reasons, both opinions have some measure of validity. Also, keep in mind it takes a buyer and seller to make a market, so when you make a trade, the other side of that trade has a differing opinion than you.

Try to remember that wrong opinions don’t exist, just those that don’t pan out in a specific scenario. You want people to at least be open-minded about your use of charts for trading and investing, right? So, you should offer others the same level of respect and consideration. After all, differing opinions are a crucial component of an active market!