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

Chapter 3 Double-Stick Moves

One of the critical lessons of candlesticks is that you need a broad view of stock prices before taking action—some form of confirmation. As the preceding chapter demonstrated, single-stick signs hold great importance, but they invariably serve as part of a larger trend. Confirmation is the key, and single sticks often prove to be false signals of reversal. The only ways to reliably analyze candlesticks are to observe multiple formations of at least two candlestick moves, confirm what appears to be occurring, and improve future timing by anticipating changes based on solid data from more than one source.

Reversal ...