StocksToTrade has awesome candlestick charts - all you have to do is learn how to read them. It’s one more reason to use the best tools, like a stock screener. Each candle shows you the price action for one trading period. You can use candles to show you one-minute, one-day, or even one-month time periods. Lucky for modern traders, computers do all the hard work now.Ĭandlesticks represent specific time periods. So traders would gather the data and draw the charts out longhand. That was long before the advent of modern computers. Prior to that, some Japanese traders had been using candlesticks for over 200 years. They’ve been in use since 1989 in the Western Hemisphere. These days, candlesticks are formed using computer programs these days. But first, let’s start with the basics: how candlesticks form. That’s when things can get really interesting.Īnd they have great names! We’ll get into specific patterns shortly. The patterns don’t always look exactly the same … But they look similar enough that when you see them over and over, you realize they can repeat. I personally use candlestick patterns because it’s easy to see patterns… You can also see the general sentiment for a stock and whether buyers or sellers have the upper hand.

A candlestick shows you the opening, closing, high, and low prices for the specific time frame.

6.9.4 Example of Bearish Three Line StrikeĪ candlestick pattern is a price movement that you can graphically see on a stock chart.Ĭandlestick charts give you a ton of information.

6.9.2 Example of Bullish Three Line Strike.

6.7.1 Example of an Inverted Hammer Candle.

6 20 Candlestick Patterns You Can Use While Day Trading.

4 Benefits of Using Candlestick Patterns Their Benefits.

How to read a candlestick chart