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

Chapter 8 Swing Trading with Candlesticks

The preceding chapter on finding buy and sell setup signals made the point that some very distinct patterns emerge to help you improve your timing. This approach—short-term trading based on the tendency of markets to overreact to both good and bad news—is widely known as swing trading. However, far from a “sure thing,” even the strongest patterns and best forms of confirmation give out false signals at times. There are ways to recognize the subtle differences between a breakout or reversal, and the coincidental movement of prices and shapes of candlesticks. This chapter explores this issue further by describing some additional technical tools you can use to expand swing trading and the timing of entry ...