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When to prefer candlestick charts

I recommend using candlestick charts because they’re much more readable than other type of charts. You can do candlestick analysis quickly and make better trading decisions.

For me reading candlestick 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.

Japanese candlestick charts of stocks, ETFs, indexes, currencies, commodities are better for visual analysis and trading decisions. See these examples of some candlestick stock charts:



Candlestick charts 01

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Candlestick charts 02

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Candlestick charts 03

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But sometimes it’s better NOT to use Japanese candlestick charts. I find two occasions when a line chart is better.

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


Candlestick charts 04


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


Candlestick charts 05

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

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