The philosophy of candle pattern identification

The philosophy of candle pattern identification

The philosophy of candle pattern identification
The identification of a candle pattern gives a trader a very clear insight into the state of the current movement of the market prices. The candle pattern actually provides an accurate way of interpreting the data displayed on a trading chart.

If a trader is able to identify the current candle pattern on his or her trading chart, he or she stands a very good chance of placing a winning trade. However, the trader must also understand what signal is being communicated by the candle pattern that he or she has identified in order for him or her to place the right trade.

For example, if a trader identifies a hammer candlestick, he or she should know that there will be a trend reversal in the direction opposite to the tail of the hammer. In case the trader doesn’t identify the hammer, he or she will not be able to interpret what is happening to the market at that very instance and hence he or she will not be able to place an accurate trade.

https://youtu.be/OT1In8ZZ3fA2016 July candlestick trading signal

2016 July candlestick trading signal