December 16, 2017

Swing Trading With Candlesticks

Swing Trading with CandlesticksThe recent market action has not been kind to long term investors with prices going up and mostly right back down again. But to the swing trader this market volatility has really been nice to trade. Long term holders have seen little increase or worse in their portfolios while the swing trader has been able to take advantage of the ups and downs the market has given us.

Here at Candlestick Trading for Maximum Profits we have been able to take advantage of these price swings to profit both long and short. Candlesticks, coupled with our unique trading system, have really been successful trading these market moves. While candlestick reversal patterns are a great tool to find changes in trends for the longer term trader to ride out they really shine when used to swing trade. [Read more…]

Candlestick Charting Is Much More Than Reversal Patterns

Bullish and bearish engulfing, morning and evening star patterns or the bullish and bearish kicker have become well known among traders everywhere as common candlestick reversal patterns. Yes there’s more but for the purpose of this article I wanted to use these examples to get the juices flowing just a bit knowing that they are some of the most popular patterns to trade. Reversal patterns have become synonymous with candlestick charting but if you’re using them as a tool for trend reversal recognition only you’re missing half of the benefit candlesticks give.

Trend trading is undoubtedly the safest method of active trading. We’ve all heard the old adage; the trend is your friend and it’s as true today as it was when it was first thought or said.  Candlestick reversal patterns, or for the purpose of this article, candlestick patterns can alert the trader to trend continuations with as much reliability as any method available. The best part is it is also one of the simplest methods available today! [Read more…]

Common Sense Candlestick Charting

Candlestick ChartingI’ve become pretty well known for pointing out what I believe is a lot of misinformation about candlestick charting over the years. Too many fly-by-night websites feature articles or even pages of information dedicated to trading with candlesticks without any regard to common sense. Many who write these articles make candlesticks seem like magic and act as if the stock price will simply “obey” candlestick reversal signals and rise or fall accordingly. Well, we all know there is no magic in the stock market and candlesticks are no different.

Candlesticks are a powerful trading system of used with a little common sense. As I teach the students of our course, candlesticks need to be applied with the rules of price action and used at price levels where price reversals or continuations are likely to happen. [Read more…]

Video – Candlestick Charting and Swing Trading

Candlestick Charting VideoIf you were to ask most buy-and-hold traders they would tell you the markets have done very little in the last few months and they probably have seen very little profit. With the ups and downs we’ve seen in the markets it may seem like there has been little profits to be made. A swing trader would tell you a completely different story. A swing trader lives by market volatility and the more volatile the better!

Candlestick charts are probably one of the best tools a swing trader can have in their arsenal. Coupled with our trading system, candlestick patterns allow the trader to enter a trade much earlier than traditional methods of swing trading. Watch as I demonstrate our methods of swing trading in the following video. [Read more…]

Candlestick Charting – Why We Misunderstand

So you’ve decided to use candlestick charts and are searching for information to learn the trading methods of candlestick charting. You’ve found lots of information on the web, most giving you the same information you’ve seen many times before and you are beginning to wonder if anyone really knows how to properly and profitably use candlestick charts much less teach it. Maybe you plot your charts using candlesticks because of the visual appeal and the ease of interpreting the daily candles but you really don’t know how to rely on candlesticks to make your trading decisions. This article explains why many traders begin to use candlestick charts and give up without gaining the benefit valid candlestick patterns can give.

The first mistake most traders make when using candlestick charts is assuming that every reversal pattern that forms on the chart will lead to a reversal. This is simply not true! In fact, for every candlestick reversal pattern that signals a reversal there is an average of four that will give an invalid signal. Not a very good probability is it? Candlestick charting and trading on valid signals is an extremely profitable method of trading but reliable information explaining the techniques are very rare. [Read more…]

Price Action Trading With Candlesticks

Inverted HammerThere are many trading systems to confuse the trader these days and almost all of them have one thing in common…indicators! It seems that price action trading, which is what technical analysis is really all about has been all but forgotten. In my opinion, price action is not only the most effective method for analyzing trades but also a simple method to learn for traders at any level.

Price action trading is the study of price movement using nothing more than the stock chart and maybe some moving averages to show dynamic support and resistance levels. The best method of price action is the study of candlesticks which give simple and reliable signals when following the rules of price action theory. Candlesticks as well as the study of price action are actually easy ways to learn trade entry levels for both long and short trades. Candlestick Trading for Maximum Profits has been teaching both since 2007 and is the reason for our great success. [Read more…]

Candlestick Charting Software

Evening Doji StarMany new traders looking for charting software begin their search looking specifically for candlestick charting software. I may be wrong (and if I am correct me please) but I don’t believe there is a robust software package completely dedicated to candlestick charting. Most, if not all, of today’s most popular charting software packages can be plotted in candlesticks. Candlesticks have become very popular in recent years and many choose to plot their charts in candlesticks for the visual appeal. While it’s true that candlesticks are visually appealing it’s the power of candlestick theory that makes them so profitable if used correctly.

To plot your charts in candlesticks the trader simply chooses this format in the chart properties of the charting software which ever that may be. But there is so much more to candlestick trading profitably than just having your charts displaying in candlesticks! [Read more…]