Monday, 3 December 2018

Candlesticks

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. As with any kind of indicator, it cannot be 100% as sometimes the patterns do fail. Nevertheless, possible reversal points can be alerting for us to observe and confirm the price action that follows.


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


I am still a novice at it and have not really put it into practice. Will update in future on my applications.

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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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