Trading has been around since the Japanese Rice Traders developed the Candlestick Trading System. Like other systems the candlesticks were pretty simple. Now, according to Steve Nison, one of the Candlestick guru’s who have written extensively on the subject there are now over 57 candlestick formations, Trying to trade all of them becomes another impossible task.
Basically, candlesticks show us Investor Sentiment. In my experience, everything everyone knows about the market in a certain time frame, is contained in the most recent or recent three price bars. Candles make price bars easier to read. You should test this and prove it to itself. Be sure to use multiple time frames when testing some of these theories. For example on a short time frame, consolidate three candle sticks by viewing the same chart on a time frame, three times longer. You will find that a Morning or Evening Star formation on the short time frame, often becomes a Doji signal on the longer time frame.
Other traders have suggested using candlesticks with western indicators gives you an advantage. One excellent book using Western indicators was written by Gregory Morris, “Candlestick Charting Explained”, is the easiest to understand.
My review of Candlestick trading systems by live trader, Steve Bigelow, has an excellent website and offers five trading videos for $15. Steve alos offers a complete course for commodity and futures trading using candlestick signals as well as a trading room.
I subscribe to Steve’s trading room for three months and his calls were 87% accurate and profitable.
We have been trading with candlesticks for over 15 years. It is one of the simplest approaches we have ever found and can be charted on any trading platform in nearly any time frame. Get instant access now. Feel free to call us for help with this approach at 775-747-8829.
Finally,
About Bill
