Candlesticks charting made simple

What have I been busy with? I guess picture says a thousand words.




I have been reading up about candlesticks lately. What an art! It can be combined with trend-lines and momentum indicators like Stochastic or MACD to give buy/sell signals.

The chart I marked above did not have inclusion of momentum indicators for the sake of simplicity. Candlesticks are remarkable tool for identifying reversal points. It is an indicator of which side of the fence has more people standing (bull vs bear supporters). As with any kind of indicator, it will not give sure-win 100% as sometimes patterns do fail. Nevertheless, these possible reversal points (candlestick patterns) can be alert us to observe and confirm the price action that may follow.


A summarized version of important bullish / bearish reversal patterns here.




Besides the normal candlestick, there's also volume candlestick. Two points to note below:

"The volume is depicted by the width of the candles. Wide and hollow candlesticks form when the close is above the open and volume is high. Wide and filled candlesticks form when the close is below the open and volume is high. Narrow candlesticks form when volume is relatively low."

"With varying width, this means the date axis is usually not uniform on CandleVolume charts. Some weeks will extend longer because of wide candlesticks, while others will be shorter because of narrow candlesticks."



I will update in future on my applications of candlesticks. For now, I will leave it to you guys to read up on the details about each of the above since there are many resources once you google.

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The highlight of G20 summit over the weekend is the (3-month) truce reached by President Trump and Xi. Let's see how the market will react to the news this week. 

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