Chapter 12

Buy Indicators and Bullish Reversal Candlestick Patterns

In This Chapter

bullet Making successful long trades by combining the relative strength index and candlesticks

bullet Using stochastic indicators and candlestick patterns for profitable long trading

This chapter clues you in on the ways in which you can begin combining your trading tools to make your trades even more efficient and profitable. More specifically, the strategies I describe in the next few pages help you understand how you can use two buy indicators (the relative strength index — RSI — and stochastics) in tandem with bullish trend reversal candlestick patterns to pick the best times and situations for entering and exiting long trades.

I’ve found the two technical indicators I discuss in this chapter to be reliable and relatively easy to combine with candlestick patterns. However, please don’t think for a second that the RSI and stochastic indicators are the only ones that work well with candlesticks. There are several others, and I strongly encourage you to research those indicators and find some that work best with your personal trading style.

Get Candlestick Charting For Dummies® now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.