Candlestick Trading For Maximum Profits: How To Effectively Identify Pivot Points Through Technical Analysis

by Phil on February 12, 2013

in Webinars

In today’s video Serge Berger of The Steady Trader discusses the power of candlestick trading and how it drives technical analysis. Candlesticks are powerful formations that allow chart analysts to depict significant turnaround / pivot points in sentiment and price. Candlestick trading is an invaluable piece of Serge’s successful swing trading style. Check out the “candlestick trading” video below:

Candlestick Trading

Candlestick Trading

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A Brief Candlestick Trading Summary & Overview

What Exactly Are Candlesticks?: Candlesticks, within a Candlestick Trading context, are simply just another way to display intraday, daily, weekly, monthly etc.. price action. Candlestick trading actually originated back in the 17th century when the Japanese used this form of technical analysis to trade rice. While the early version of candlestick trading differed from what became the US version initiated by Charles Dow around 1900, many of the principles remained the same, including:

  • The “what” (price action) is more important than the “why” (earnings, m&a, news, etc..).
  • All known information is reflected in the price.
  • Buyers and sellers move markets based on expectations and emotions (fear and greed).
  • Markets fluctuate.
  • The actual price may not reflect the underlying value.

Why Use Candlesticks?: Traders have increasingly turned to candlestick trading over the past few years for a few reasons but most notably because the candlesticks provide much more visual information than standard line or bar charts and candlesticks display both price action and investor sentiment with footprints.

Within the video Serge explains that formations are key, and not only are they key they are also pretty easy to spot with a little training. But what formations should traders pay most attention to? Serge identifies 3 key high probability formations each trader should be able to recognize and act on swiftly to generate profits. Other topics covered in the video include detailed discussions on candlestick trading confluence zones as well as a comprehensive discussion on key stops and price targets.

Candlestick Trading 

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