Investor’s Library: Fundamental Analysis, Technical Analysis, and Income Investing (Collection)

Chapter 2 Single-Stick Signs

The most practical way to master candlestick charting is to start with the single-stick sign and evaluate it, and then move to double-stick moves, and finally, move on to the more complex multistick patterns. Each formation you find in charts is important in what it reveals about the current trend: strength or weakness, direction, or pending reversal.

Every analyst faces the challenge of interpretation. Even with an excellent understanding of how formations develop, the immediate pattern can represent a false start. Every trend has these patterns. The apparent direction or change in status misleads you if you do not fully understand how to combine many different candlestick and technical indicators, or a change occurs ...