“A Candle Is Better Than a Bar Any Day”

There are various ways that stock prices are represented on charts.

The most common charts are what are known as:
• line
• bar
• candlestick.

Line charts are what you typically see on the TV or in newspapers. They represent price action by a single line.

They only show the closing prices of the stock and are of little use to traders. Because they don’t show what has happened during the day.

Bar charts represent both the open and close prices. In addition, they include the high and low of the day. These four prices are critical for your full analysis of a stock’s price action.

Candlestick charts show us all the price information of a bar chart but in a far more

graphical and clear way.

The “story’ of the stock literally jumps out at you.

When we were first introduced to trading it was with bar charts. But when we discovered candlesticks a few years back we immediately saw the clarity and detail that they provided.

They may seem a little strange to you at first but do persevere. We can assure you that they are the only sort of chart to use!

And candlestick patterns, particularly reversal patterns are one of our favorite tools in chart analysis. Doji, shooting stars and inverted hammers may sound a bit weird at first but they are some of the best friends a trader can ever have!

So if you aren’t familiar with candlestick charts and patterns I

would strongly suggest that you learn more, now.

And the VERY BEST explanation of candlesticks [apart from the SMG Tutorials of course!] is Louise Bedford’s “The Secret of Candlestick Charting”. It is on our booklist in: www.stockmarketgenie.com/resources
David Chandler www.StockMarketGenie.com Ordinary People Making Extraordinary Profits Our comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.

Source: Cyberxpress

Soy Candles? What Will They Think of Next?
Quick: What comes to mind when you think of soy candles? Before my...

Candle Magic
Probably since the first candle was lit by an early Egyptian (or...

The Many Dimensions of the World of Candles
Candles have been around for many, many years, but it was not too...

Know Much more about Candles
A candle is a light source usually consisting of an internal wick...