Understanding Candlestick Basics?

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi All,

I am a new trader as of two days ago.
Lots to learn.

I am some trouble understanding the BUY points versus SELL points based on the Candlestick pattern.

At its most basic level, would I BUY as I see a Trend up then SELL as the trend slows down and before the Reversal?

Is that essentially how it works?

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2

Your trading should follow certain simple and consistent truths. If price has been rising for multiple days it is more likely to continue rising than to start falling. But the difference is not massive - in an uptrend typically about 55% of the candles are white (their close is higher than the previous close) and about 45% are red (their close is lower than the previous close. These price rises per day are often also greater than the price falls on negative days.

Buying when price is rising in an uptrend is therefore the basis for a sound strategy.

Various tactics can be used to identify entry points and take-profit points but always set a stop-loss - just below a level where price recently stopped falling is a common location.

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Hi and welcome in the BP community :slight_smile: I think you should start from gain general knowledge Learn How to Trade the Markets this topic may also help you Program your success good luck in this long journey. Regards Greg

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Thanks tommor & ProfesorPips,

Yea, it’s scary stuff. I am already cashed up ready to go but too chicken to press that BUY Button.

Just need to understand some of the results when I select certain options.

I now have a more improved understanding on the Candles but I am sure there will be more to come.

ProfesorPips, the link you gave was more based around Forex and on saying that I assume the strategy would be the same regardless of what market I’m playing with?

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after two days on the market, you should know how the market works. Candlestick patterns are one of many strategies, and you don’t know which will be the best for you. Candlestick patterns have different weight depends on time frames and different behavior depends on financial instruments. Regards Greg

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Please don’t take me the wrong way. I’m not trying to criticise or to sound negative, but that sentence fills me with alarm. :astonished:

It sounds to me that you’re many months from being “ready to go”, and at least many weeks even from being ready to go on a demo account without being cashed up at all.

What you’re asking demonstrates that you’re nowhere near starting, yet. Not a criticism. That’s where we all began.

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7

There are lots of resources available to learn Candlestick basics, Free PDFs, YouTube videos and most importantly like the previous members posted, School of Pipsology…

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Hey there,

Trading can feel overwhelming at first, but remember, every journey starts with a single step. Understanding when to buy and sell based on candlestick patterns takes time, so don’t be too hard on yourself. You’ve got this!

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