Chart patterns trading is often equated to buying and selling at the direction of technical indicators. However, although chart patterns are considered to be technical tools, they differ in many ways from indicators. If you’re in the process of becoming a market technician, then it’s important to understand the functionality, pros, and cons of both… Read more.
Since Steve Nison’s introduction of the candlestick chart in the early 1990s, western traders have made it a staple of technical analysis. Regardless of asset class or product, scores of aficionados view Japanese candlesticks as an ideal way of interpreting market behavior. If studying price action piques your interest, you have likely heard of candlestick… Read more.
The Shooting Star is a formation that has the market taking a hard stab at a blow off to the upside but eventually failing and giving way to the sellers of the market. This indicates that trader sentiment may be shifting to the downside.
Written by DeWayne Reeves of CFRN.net. Burton Schlichter is a partner and featured broker at CFRN.net. One of the easiest candlestick signals to spot besides our consummate favorite the Doji, is the Bullish Engulfing Pattern. This is one of the 12 primary signals taught to me by candlestick mentor, Steve Bigelow. A candlestick purist might… Read more.