Trading Signals Obtained By Combining Technical Indicators With Candlestick Patterns Can Be Highly A
Candlestick charting is a highly powerful tool in the trading arsenal of any trader
. The beauty of candlestick charting lies in the fact that it can be used in any market whether you trade forex, stocks, futures, options, bonds, ETFs, commodities, gold or whatever.You can use nothing but candlestick charts and patterns when trading. These candlestick charts have a number of candlestick patterns which when appear on the chart give an important signal about the market sentiment.
For a trader, one of the most important thing to know is whether a trend is about to reverse itself or continue.There are a number of candlestick patterns ranging from simple to complex that can be used accurately in predicting trend reversals and trend continuation.
Now, when you combine these candlestick patterns with technical indicators, you can obtain highly accurate trading signals that can triple your profits.
There are many technical indicators now available. Everyday, you might come accross a new technical indicator. When you combine these technical indicators with candlestick charting patterns, you get a what you call a highly accurate confirmation trading signal that tells you whether the trade will be high probability or not.
Trader use many different types of indicators to enhance and complement their trading styles. Traders are always searching for a perfect combination of technical indicators and signals.
To tell you truth, in the beginning, you might get overwhelmed by the number of technical indicators that are available. What you need to do is to choose only two or three and then master them. One should be a trending indicator and the other should be a ranging indicator. I think, mastering three indicators is the best for you. Don't go for more than three indicators.
So why traders use these technical indicators? Traders use these indicators to confirm whether the trend is about to reverse itself or continue and whether the market is overbought or oversold. Candlestick patterns also give confirmation about trend continuation or trend reversal.
So, when you combine both of them, you can confirm these signals. Suppose, a candlestick pattern appears on your chart that gives a signal about the trend reversal. You confirm it with a trending technical indicator. If the technical indicator also gives a trend reversal signal, you have a highly accurate trading signal. But if the technical indicator does not give a trend reversal signal, you might ignore the candlestick pattern that gave the trend reversal signal.
Candlestick charts can alert you on the trend reversal that you can then confirm with the help of technical indicators. In the same way, you can use candlestick patterns to confirm trend continuation with the help of technical indicators.
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