21 Candlestick Formations Every Trader Should Know
By kelly price
The above describes the theme of a book by Melvin Pasternak and it tells you the best 21, of over 100 candlestick patterns which you can see or use on a forex chart. If you love candlestick charting or you want to learn, this book is a good place to start and at just $20.00 it's a steal.
Pasternak claims that by Knowing these 21 formations traders can gain a trading edge. There are those that occur most often and are more reliable and there are those that are warning signs of turning points.
Why are Candlesticks Such a Great Trading Tool?
The reason lies in the fact that they paint a picture on a chart.
This give you a more visual illustration of human psychology than a bar chart ever can. Candlestick charts bring human emotion to life right before your eyes and that's a good advantage to have, to initiate new positions or as a warning to cut and run!
A Deep Insight into Human Psychology
The answer can be found in the clear and straight-forward nature of the candlesticks themselves-offering traders the ability to see the bigger picture.
Continuation patterns, reversal patterns, emerging trends, bottom and tops -- all of these insights come together in a way that other charting systems just can't compete with.
The book explains the following:
* About the candlesticks (21 formations) every trader must know by name
* Discover the candlesticks that occur most often
* Learn about the candlesticks that will immediately affect your trading decisions
* Find out how to increase your accuracy and trade with greater confidence.
Candles combine well with other tools of technical analysis such as support and resistance, moving average, and indicators such, stochastics,
RSI, ADX and MACD to name but a few.
I think paternick's choice of candlestick patterns is excellent and if you like the idea of candlestick charting, or are trading with them already, then this book will appeal to you.
Candlestick charts have been used for thousands of years and it's only in the eighties that they became popular again and let's hope that they stay popular. There fun, easy to use, can give you a deep insight into human psychology and if you are using forex charts - that's just what you need.
21 Candlesticks Every Trader Should Know, is 128 pages, an easy read and at a price of just under $20 it's a bargain.
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