Candlestick Charting For Dummies
Russell Rhoads
- English
- ePUB (mobile friendly)
- Available on iOS & Android
Candlestick Charting For Dummies
Russell Rhoads
About This Book
Demystify stock charts so you can up your investing game
Candlestick Charting For Dummies is here to show you that candlestick charts are not just for Wall Street traders. Everyday investors like you can make sense of all those little lines and boxes, with just a little friendly Dummies training. We'll show you where to find these charts (online or in your favorite investing app), what they mean, and how to dig out valuable information. Then, you'll be ready to buy and sell with newfound stock market savvy.
Candlestick Charting For Dummies helps you build a foundation of investing knowledge and lingo (bullish? bearish? What is a candlestick, anyway?), then shows you the chart-reading ropes with relevant and easy-to-understand examples. It covers the latest investing technology, cryptocurrency, and today's somewhat-less-predictable market environment.
- Get a refresher on stock market terminology and investing basics
- Discover how easy it is to understand price history and movement with candlestick charts
- Identify the best times to buy and sell securities, including stocks and crypto
- Learn from real life examples so you can invest with greater confidence and success
This is the Dummies guide for beginner and intermediate investors who want to make smarter decisions with a better understanding of how to read candlestick charts.
Frequently asked questions
Information
Getting Familiar with Candlestick Charting and Technical Analysis
- Get familiar with the mechanics of candlestick charting and how it contrasts with other methods of charting security prices.
- Discover how powerful candlestick charting is relative to other, less-illustrative types of charting.
- See what price activity creates candlesticks.
- Understand the mind of the market based on individual candlesticks.
- Explore electronic resources for creating candlestick charts and even some for identifying bullish and bearish patterns.
Understanding Charting and Where Candlesticks Fit In
Considering Charting Methods and the Role of Candlesticks
Getting a feel for your options for charting
- Line charts: These charts are simple and helpful for short-term decisions, but theyâre quite limited in the amount of data presented.
- Bar charts: These charts are the most common type and are much more useful than line charts, but theyâre not as versatile as candlestick charts.
- Point and figure charts: These tried-and-true charting methods are great for recognizing support and resistance levels, but theyâre far less dynamic than candlestick charts.
Realizing the advantages of candlestick charting
- Two of the best features of candlestick charting in general are visual appeal and readability. You can glance at a candlestick chart and quickly gain an understanding of whatâs going on with the price of a security. You can also tell whether sellers or buyers have dominated a given day and get a sense of how the price is trending.
- Even after reading up on the most rudimentary candlestick basics, you can easily spot the opening and closing price for a security on a candlestick chart. These price levels can be very important areas of support and resistance from day to day, and knowing where they are can be extremely helpful, especially for short-term traders.
- Candlesticks arenât just pretty faces. Candlestick charts also feature specific patterns that you can identify and use to decide when itâs time to buy, sell, or wait on a trade or investment. These patterns can be a real boon to your work with securities, and you can combine them with other technical indicators for even more reliable results.
Understanding Candlestick Components
- Price on the open: The price at which a security opens in a given period is the first piece of information used in creating a candlestick. Depending on whether the securityâs performance is bullish or bearish, the opening price corresponds to either the bottom edge of a candlestickâs candle or the top edge.
- High price: The highest price that a security reaches during a given period corresponds to the top of a candlestickâs wick. If a security opens at a certain price and then trades consistently lower than that price throughout the period, there wonât be any wick above the candle.
- Low price: The lowest price that a security reaches during a period corresponds to the bottom of a candlestickâs wick. If the price action for that period is extremely bullish, and prices trade higher than the open, there wonât be any wick below the candle.
- Price on the close: When a security finishes ...