Working with Candlestick Patterns

The components of a candlestick may be the bones of candlestick charting, but candlestick patterns are the heart and soul. Patterns appear on candlestick charts as simple, single-stick occurrences or complex, multi-stick formations, and many different types of patterns can tell you what may be in store for a security that you've had your eye on for trading or investing. And knowing what may lie ahead can be the difference between a profitable trade and a flop.

Candlestick patterns indicate when prevailing trends reverse or when they continue. Both types of patterns are very useful because they tell you when to get into a trade, when to get out of a trade, when a trade you're in may make no sense, and even when to hang onto a trade you're already in. Check out Chapters 5 through 10 for more info on identifying and trading on a wide variety of candlestick patterns.

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