Using Candlestick Charts For Day Trading - If you are a day trader, you...
Using Candlestick Charts For Day Trading - If you are a day trader, your goal is to profit from market price fluctuations on a daily basis. Using candlestick charts for day trading is one way to stay on top of what is happening. You need every possible advantage to keep one step ahead of other traders. Intraday candlestick patterns provide a warning that something is happening right now. As high volume traders buy or sell, this affects the price and forms an observable candlestick pattern. When you start studying candlestick charts, rely on metrics you are most familiar and comfortable with at first (e.g. support, resistance, and pivot points). Simply use the candles as added confirmation for your decisions while you learn to understand their meanings. On the most basic level, you can calculate what the daily average was for any particular day and observe the prevailing trading bias. - A bullish candle is one that is white with the close higher than the opening - A bearish candle is one that is black and has the close lower than the opening Tools of the Trade To be a winner, you have to lead the crowd in the market - not follow it. This means you must know your charts well and understand what they mean. Prices on the market can change minute by minute. To stay abreast of these fluctuations, try using candlestick charts for day trading based on 15 minute intervals. Use even shorter intervals for periods of high volume of trading. Keep an eye on several different time intervals at once to get a better feel for what is happening. Monitor support, resistance, trends, volume, moving averages, stochastics or similar metrics, and chart patterns (including candlesticks) on a real time basis. Fortunately, you can overlap much of this data on one screen with today's sophisticated trading software. After Market & Pre-Market Activity If you spot a significant opportunity or critical candlestick pattern near the end of the day, you may have the option of 'after hours trading'. ..