When to prefer candlestick charts

For me reading of these charts is the bread and butter of my trading.

Candlestick charts provide much more info for trading. Using candlestick analysis basics together with important candlestick patterns and other basics of technical analysis leads to the creation of a profitable stock trading strategy.

These Japanese style charts of stocks, ETFs, indexes, currencies, commodities are better for visual analysis and trading decisions.

If you want to learn more about candlesticks then check Steve Nison's site. It provides a lot of good educational materials to learn more about candlesticks.

See these examples of such stock charts:

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When NOT to use them

First is an intra-day chart of some sentiment indicator like TRIN:

The second occasion happens when I need to compare relative performance of two or more stock symbols.

BTW: This relative performance chart is a good tool for measuring relative strength or weakness.

Multi time frame charts

Such setup is good not only for daytraders and short term traders but also for active investors. These historical stock charts provide much better picture for analysis of situation.

And the knowledge what is current stock market situation is necessary to produce much better trade results in your stock trading system.

Stock chart patterns

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