The Learning Curve

I’m in the beginning stages of understanding technical analysis and am currently studying candle-sticks and am trying to remember all of the different types of patterns. I’m determined to understand this, however it feels like a lot to grasp and commit to memory for a newbie just learning this information for the time.

Any advice? What are some ways that can help supplement the learning process as it relates to understanding the candle-stick charts and technical analysis as a whole.

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Yes - I completely see what you mean (and remember thinking that, myself) …

I’m not sure I’d go so far as to call it “advice”, but I can offer two “observations”.

I hope the first is non-contentious but I know that many people [I]won’t[/I] necessarily agree with the second.

  1. It helped me to concentrate most on what’s most important, which meant support/resistance and things relating to support/resistance;

  2. It helped me (a lot) to use bars and [I][U]not[/U][/I] candles (I know others who trade for a living who share this perspective, too): they both give the same information, of course (the open, high, low and close for each period), but candles visually accentuate the opens and closes (which are essentially subjective and obviously user-defined) whereas bars visually accentuate the highs and lows (which are entirely objective and factual, as well as being directly related to very local support and resistance) … “no comparison at all”, in my opinion, but I don’t really expect many forum members to agree with me. :wink:

My personal advice is to always practise what you learn. Seeing how the theory works in the actual charts in real life was very helpful to me when I was a newbie. Also, I recommend to analyze your trading in the end of every week at least, if not in the end of every day. See what you did well and what can stand some improvement.

You have to remember the basics first for a technical analysis and then when you are watching the behavior of the market for long time you can recognize some of the patterns. You don’t have to use all of them…

Take it easy MillenialPipster. The game is to make enough money with one way that works, not to know all the ways that don’t.

Many candlestick patterns won’t be common enough or reliable enough to make consistent money, they just look great.

Some that do make money don’t even have a name. For example, Steven Primo suggests setting a buy order above the high of a day on which the close is in the top 25% of the day’s range, and price is above the 50SMA. Says it has made him loads of money. Its working for me, though you too might want to throw in another few filters.