Candlestick Chart Analysis and Trading Tips

Part of the Candlestick Charting For Dummies Cheat Sheet

If you’re examining or trading a candlestick pattern, keep these guidelines in mind before you decide what to do with your money, so you can make an informed decision:

  • Determine whether the market is trending up, trending down, or not trending at all.

  • If you put on a trade, be prepared to identify the point at which you take a loss, especially when you’re trading against the trend.

  • Try not to anticipate that a pattern is going to be created by trading before the formation is complete.

  • Use technical indicators to complement patterns. Indicators help to confirm your opinion of the market trend.

  • When putting real money into trading, don’t trade what you can’t afford to lose!

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