Candlestick Charting Explained

There are a number of charting methods available to traders but the one we use at online currency forex trading is candlestick charting. Candlestick charting explained in simple terms is that Candlestick trading analysis does not require knowing intricate formulas or ratios. It also does not require massive amounts of education to effectively utilize the signals that why we prefer to use this type of charting.

The average investor does not have to be dependent on the investment professional, a professional whose recommendation does not always have your interest at the forefront. Whether totally unfamiliar with investment concepts or very sophisticated in investment experience, the Japanese Candlestick trading formations are easily utilized. The signals and patterns are easy to see.

Japanese Candlestick charting dramatically increases the information conveyed to the visual analysis. Each candlestick trading formation or series of formations can clearly illustrate the change of investor sentiment. This process is not apparent in standard bar chart interpretation.

There are really only 12 major Candlestick patterns that need to be committed to memory. The Japanese Candlestick trading signals consist of approximately 40 reversal and continuation patterns. All have credible probabilities of indicating correct future direction of a price move.

If you want to learn more we suggest you hop over to the candlestick forum and download their free 12 major candlestick patterns. They have great candlestick charting resources, candlestick signals, training materials, candlestick trading forum and more. Candlestick charting explained in simple layman terms.