Day trading with candles.
What are candles you ask, well its a way of viewing prices on charting software below are a few of the different ways of viewing historical prices on charts.
- Heikin Ashi
- Hallow candles
I just find it mind-boggling the amount of info there is on the internet about candles. People trade off the back of shooting stars, heads and shoulders, hammers, inverse hammers to name but a few.
I won’t try to cover any of those topics as plenty of others have and I won’t pretend you will only use me as your only source of info.
But if you need to put a strategy together that works with rules and guidelines you are in the right place click here to take a look at my classroom.
Not sure where to look and what charting software to use click here to visit investing.com its FREE
This is the one I choose to use, why did I decide to use hekin ashi well, over the years I tried a few different things out and this is the one that makes the most sense to me.
I tried following shooting stars and gaps but that didn’t work out either.
I Feel that Hekin ashi gives you a clearer definition of what the market is doing and the direction it’s heading.
I just use the candles for when it gets close to one of my pivots i am just looking for confirmation of a turn around.
Candle Stick Trading
Each candle represents the time frame you have set, be it 1 min to a year that one candle represents that time frame.
Each candle has an open-close and high and low for the period of time the wick on the candle is the line either ontop or below the candle.
This is how far the price stretched then came back in that give time frame.
As you can see above the candles have gone up with wicks on top then stretched up and then come back down again with wicks on the opposite side.
There are many strategies that revolve around candlesticks I just use them for one purpose to confirm resistance or not so I look for the wick.
that’s the line at the top or the bottom that is left when the candle is completed.
if you need any more info on candles I would suggest visiting Investopedia but wouldn’t get too carried away or you may just confuse yourself.
Below is a list of lessons and links to various blogs I have written so you can pick and choose which one you would like.
My only advice would be to take your time on each lesson look at other sources more in-depth and learn about it. but don’t do what I did build a strategy on every piece of info I read about.