Chapter 11
Using Technical Indicators to Complement Your Candlestick Charts
IN THIS CHAPTER
Taking advantage of trend lines on a chart
Using moving averages to establish a trend
Appreciating the relative strength index
Adding stochastics to your trading toolbox
Jumping on the Bollinger band bandwagon
You can use nothing but candlestick patterns when trading, and some traders have proved that route to be a profitable one. But you shouldn’t think twice about combining candlesticks with other technical indicators. You can take advantage of a wide range of indicators to confirm the conclusions you draw from your candlestick charts, and your results are often more reliable and profitable than they were before you learned this. You may very well find that you can’t live by candlesticks alone!
Many candlestick patterns — from single sticks to complex multiple-stick formations — depend on the market context in which they appear. A bullish signal in a bearish market, for example, sparks skepticism ...
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