Chapter 9 Spotting Trends and Using Trendlines
Candlesticks provide intelligence on two levels. First, they help you to determine what is happening at the moment and what price direction is likely in the next handful of trading sessions. Second, they provide insight into the current trend—its strength or weakness, likelihood of continuation or reversal, and duration.
Candlesticks can be used by themselves to time entry and exit. However, they are even more powerful as timing tools when viewed in a larger context of long-term chart analysis. Swing traders, for example, rely on very short-term trends and expect three- to five-day price movement followed by reversal. The process of finding and acting on entry and exit setup signals is continual ...
Get Investor’s Library: Fundamental Analysis, Technical Analysis, and Income Investing (Collection) now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
