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!