2006-12-24 17:39:51 · 6 answers · asked by prince 1 in Business & Finance ➔ Investing
Trend and price are #1 and #2. Candlesticks are usually used next.
Once you are aligned with #1 and #2, then you can use candlesticks to help determine your entry/exits.
Remember that candlesticks are best for short term reversal indicators within the chart you're analyzing.
I also use volume to help determine buying/selling pressure.
So, to answer your question, in general, I check, trend, price, and volume. Please let me know if you have other questions!
2006-12-24 17:54:46 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
There is no one answer to this. It all depends on yours backtested strategy. If you don`t have one, candlesticks will not do anything for you.
There are people however who can master candlesticks interpretation and get good results but it is a long lasting process and requires a lot of studying.
2006-12-25 02:11:51 · answer #2 · answered by efpol2000 2 · 0⤊ 0⤋
are you talking about patterns a person wants for their wedding? or are you talking about just buying a candlestick? A candlestick "pattern" would not be that important to me, usually they are plain. Choosing a candlestick you might want to determine if it is for one candle only or for 7 or 9 candles like a candelabra. They come in silver and wood mostly (as I recall). If you are talking about candles then you'd consider if they are smokeless, if they have an aroma, the color, the size.
2006-12-25 01:44:13 · answer #3 · answered by sophieb 7 · 0⤊ 2⤋
You need to know the volume associated with the price. To me the HLC bar is more helpful. The volatility is important also. RSI, SMA's. Chakins, etc are all history of some help. CANSLIM is very helpful for predicting. You need the IBD subscription.
2006-12-25 01:54:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Check the RSI, MACD, and other money flow indicator
do not skip out Moving Averages
2006-12-25 08:04:06 · answer #5 · answered by Hoa N 6 · 0⤊ 0⤋