Editor’s Note: This is the second in a three-part series. View the first of the series here.
After reviewing part one of this series, will you ever again be able to see a candlestick chart again and not think of trading the markets?
No? Good. Now let’s dive in deeper to make this tool even more effective for your trading.
In our introductory discussion of why candlestick charting is still relevant, we saw how the simple figure of a candlestick body and the lines that attach to them (“shadows”) memorably convey market activity knowledge with economy and clarity.
So much information—so few lines and shapes! Let’s dig in…