In This Chapter
^ Taking a look at options for charting and why candlesticks are superior ^ Making sense of candlestick construction ^ Exploring the wide variety of candlestick patterns ^ Using technical analysis alongside your candlestick charts ^ Understanding a few trading and investing basics
7 he advent of the Internet has leveled the playing field for securities traders.
Access to markets once meant placing orders through a broker, and now it's little more than a couple of mouse clicks away. Commission rates are dramatically lower, and access to market information is now in many cases free. Getting into securities trading is now easier than it ever has been, and the result is a whole generation of investors and traders that handle their finances without professional help. Technology allows these people to enjoy many new types of market information, and one of the best tools available is candlestick charting.
Candlestick charting methods have been around for hundreds of years, but candlesticks have caught on over the past decade or so as a charting standard in the United States. I've been working with candlestick charts for quite a few years, and I've seen many traders — novice to professional — develop a fierce loyalty to candlesticks after taking the time to understand their uses and potential. I think you'll feel the same way, and this book is the first step on the path to conquering candlesticks.
The material contained in this chapter exposes you to many of the facets of candlestick charting that continue to fuel its rise as one of the most popular charting techniques. I begin with the overall role of candlesticks within the context of charting. I cover the advantages of candlestick charting, and the basics of candlestick construction. I also take the opportunity at the end of this chapter to discuss how to get started as well as give some insight into the characteristics and habits that successful traders employ in their pursuit of profits. Enjoy, and happy charting!
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