Want to know the basics about Candle sticks

What are the basics about candle sticks?

Hello @colesbanks!

Check out this lesson in the School that may help you:

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That good. But there are lot of candle stick pattern. So, it is little bit hard to remember all of them.

Along with babypips school I find a book that is very helpful to understand the candlestick. The book name is Candlesticks Made Easy by Christopher Lee. It’s a very small book, only 74 pages but very effective.

Trading requires a huge amount of knowledge.
I am graduated in chemistry, trading has been like a second degree and despite many books and thousands of hours spent studying and testing, I still make my living as chemist. :rofl:

There are a lot of candlestick patterns. I think you should refer to books relating to technical analysis.

Beware of placing too much faith in candlestick patterns. they are predominantly used as entry patterns and traders often make two fundamental mistakes by applying them too strictly -

  1. You might see a text-book entry pattern on the chart for ABC/XYZ, but the text-books always start with the unstated assumption that you want to be long or short in ABC/XYZ. You should first go through the exercise of testing why you would want to be long or short in this pair. Where is price probably going to go after this fantastic pattern? Is it really the best pair to be in? Don’t try and take every pin bar just because the pattern is so good, look deeper.

  2. Reversal patterns sometimes signal the end of a trend. But usually that trend does not literally reverse into its opposite trend direction. The more probable outcome from a trend reversal is a range / congestion. By the same token, continuation patterns only signal a continuation of a trend - despite the classic continuation pattern is price really in a trend, and is this really the best trend to get into?