O'Reilly logo

Profiting from Technical Analysis and Candlestick Indicators: Powerful Methods for Accurately Timing Trades by Michael C. Thomsett

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

2. Traditional Analysis—The Power of Pattern Recognition

One key to effective charting is found in the type of price pattern itself. Ease of recognition makes it possible to spot signals, especially reversals. The same rule applies to traditional price patterns as to candlesticks: The most compelling signals should be emphasized, as they provide the best experience of forecasting coming direction.

This means that, like candlestick indicators (so-called Eastern indicators), traditional price patterns (Western indicators) are subject to the same qualifications:

Image Strong signals. A short list of exceptionally strong signals should be emphasized over ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required