Tuesday, October 09, 2012
Why Use Candlestick Charts in Your Trading
You've probably heard of "Japanese Candlesticks" before. After the success of Steve Nison’s first two books, they've become part of every trader's vocabulary. Japanese candlestick chart analysis, so called because the lines resemble candles, has been refined by generations of use in the Far East.
The candlestick chart phenomenon has caught fire around the world with all kinds of traders, from institutional power players to individual part-timers.
Why do candlestick charts attract so many traders serious about increasing profits and decreasing risk? Because when you know how to properly use and interpret candlestick charts, they really work in your favor. They're reliable. You can count on them.
But many traders think they need to abandon their current trading strategies if they're going to use candlestick charts.
In fact, you can actually enhance the effectiveness of your trading strategies when you combine your current methods with candlestick charts. You'll love how simple (not to mention how powerful) it is when you combine your own favorite market indicators with the proven effectiveness of candlestick charts.
Candlestick charts are like having a quick "X-Ray" of the supply and demand conditions of a market.
So, if you don't have hours of time on your hands to do extensive analysis, then candlestick charts are a perfect way to get solid information in just a few short minutes.
Today's markets are incredibly volatile. Plus, you're competing against other traders who are constantly looking for an "edge" to beat you. The market risk is very real, and can be daunting if you're not prepared. That's why you need a trading weapon that will help you in your battle of trading ... and that weapon is candlestick charts!
When I walk around the trading rooms at the premier financial institutions and even on the trading floors, I always see candlestick charts being used by the top traders and market makers.
Isn't it fascinating how sometimes the simplest concepts are also the most profound? That's how it is with candlesticks.
"But How Do Candlestick Charts Perform in Weak Markets?"
One of the great things about candlestick charts is that they work exceptionally well in any market — especially today's dangerous and volatile environment.
Please understand that not only will candlestick charting techniques help you improve your trading profits, but also they really shine when it comes to capital preservation. They help you avoid bad trades.
Click here to review more about candlestick trading.