Trading Success with Candlestick Technical Analysis
Feb 22, 2009 copyright © David S.Y. Wong, published in SelfGrowth.com
There are many candlestick patterns in the entire spectrum of the Japanese candlesticks literature in print and on the Internet. It is an enormous task to learn to recognize the candlestick patterns and to interpret the candlestick signals to translate into trading decisions. It is a time-consuming task, or a distraction in the very least, to determine candlestick patterns and to interpret the candlestick signals in order to decide on what to trade and when.
You should research the different types of candlestick patterns and how candlestick technical analysis works in identifying trends and trend reversals. However, you should not spend time deciphering stock charts looking for candlestick patterns and determining if they constitute a valid signal. I submit that your time is better spent on other trading activities such as keeping track of company news and events, and monitoring the pulse of not only the company (and stock) but also the industry that the company is in.
You need to find software for your computer or available through web sites to provide candlestick charting along with candlestick technical analysis where the candlestick signals (patterns) are shown to you. Then you, as the stock trader (not the candlestick technical analyst), can use the software provided information to make your successful trading decisions.
Examine the historical trading performance using the candlestick technical analysis software on your stocks of choice. This will give you confidence that there is credence in the method and that the system works. Begin with paper trading a basket of stocks and monitor your trading performance as you experience and refine your use of candlestick technical analysis. When ready, proceed to real-world trading with your new-found tool. Do not forget or abandon your other trading tools and resources as candlestick technical analysis is a complement to (not a replacement of) your trading tool box and your trading wisdom.
Feb 22, 2009 copyright © David S.Y. Wong, published in SelfGrowth.com
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