Chapter 7 Buy and Sell Setup Signals

A long-term investor is likely to find candlestick patterns interesting, but will not use them to time short-term trades. In comparison, a trader who relies on candlesticks to time entry and exit decisions is going to rely on candlesticks (as well as traditional technical analysis and volume indicators) to swing trade in stock. The swing trader is anyone who wants to make moves in and out of positions to take short-term profits resulting from price spikes (in both directions) and the tendency of the market as a whole to overreact to news.

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