Many traders consider candlestick charts more visually appealing and easier to interpret. Each candlestick provides an easy-to-decipher picture of price action. At once a trader can compare the relationship between the open and close as well as the high and low. The relationship between the open and close is considered vital information and forms the essence of candlesticks.
Candlesticks offer a quick view into the current trading atmosphere and investor sentiment. Candlesticks study the effect of a given market and security. Candlesticks are strictly about technical analysis, and as such are not always 100% accurate because they measure the effect of market forces, including price, fundamentals and others.
When used correctly, Candlesticks are a great tool that can help you determine potential market direction. Candlesticks quantify what the traders are doing and thinking.
Barry Norman The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.