Traditional bar and line charts need to be used in conjunction with other indicators to glean trading insights.
Candlestick charts however, display market movements in much greater detail.
These insights into price action in financial markets, allows an investor to use pattern analysis to determine future movements.
After some practice and education, the use of Candlestick charts to perform pattern analysis, can assist an investor to hone their trading strategies.
Candlestick analysis is all about reversal and continuation patterns but it also introduces another important element – market psychology.
Understanding how to use and interpret technical analysis charts, is a vital skill for any investor. Candlestick charts are one of the most popular charts in use -and for good reason.