Candlestick Charting For Dummies
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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!

About This Article

This article is from the book:

About the book author:

Russell Rhoads is a trader and analyst for Peak Trading Group in Chicago. His career in trading and market analysis covers over 17 years. He has a BBA and MS in Finance from the University of Memphis and has done graduate level work in Financial Engineering at the Illinois Institute of Technology. Russell also holds the Chartered Financial Analyst designation.

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