Goodmorning
i would like to know how do i determine the right time to place a trade from reading candle stick charts?
Hi there.
Do you mean whether to pull the trigger at close or at the high or when to use them or not?
Cheers.
I like to use timeframe to analyze the trend market based on candlestick pattern usually I use weekly timefarme to analyze major trend for long term, and then going to daily timefarme and then use one hour timeframe also and look entey on small timeframe
I look for any hammers, dojis, hanging men and spinning tops on the 4-hour and daily time frames, occasionally on the 1-hour time frame too.
Nobody knows the absolutely right time. Something that is right for me can be wrong for you and wipe out your account. But following basic market principles, the bigger is timeframe, the better.
Cheers.
The right time is usually when the candlestick forms (i.e. the price has closed) and you have fairly good idea where the price is headed for.
You will know that once you get enough chart reading education. Here is a website where you can find all you need about charts reading: stockcharts.com
That is a simple question that requires a pretty detailed answer. This forum has a section about candlesticks 301 Moved Permanently , and you can also look up Steve Nison’s books on candlestick patterns as well.
It doesnt seem that easy!. the whole technical study tells us how to judge the candles. And tell us the right price to enter or exit the market.
You need to study the pattrens, different typs of candle structures etc. Most of us use Indicators to make the jugdement correctly. Let me explain you with an simple example, If a bullish candle appears above the EMA 50 or 100 we can expect market to move higher. Also these kind of strategies depend on the timeframe you follow. Best of Luck.
I agree with dianajs on this one - Steve Nison has some really nice videos/books on the subject that you should check out if you want to have a better understanding on candlesticks.