Using candlestick charts for technical analysis

Technical analysisWhile taking trade/investment decisions we should always do a fair amount of technical/fundamental analysis to eliminate the risk of ignorance and not following the herd. We can train ourselves in any of these (if not both) to do the analysis. So if you are a technical analyst then there are some major patterns that help you catch hidden and potential opportunities.

To begin with there are patterns like:

  1. Double top pattern
  2. Stock market gaps
  3. Double bottom pattern
  4. Head and shoulders
  5. Support and resistance through graphs
  6. MACD indicator
  7. Trends from graphs

There are a lot of patterns on candle stick charts that you could look for. But don’t get yourself too confused by following all of them. As a rule of thumb select any two patterns (or max three) you are comfortable with and could relate well with the charts and then always use them to take decisions for trades.

Even before actually doing trades have some mock trading sessions done with the technical patterns that you choose and then you are ready to hit markets .

Happy investing !!! :)

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