Читать книгу Candlestick Charting For Dummies - Russell Rhoads - Страница 25

IN THIS CHAPTER

Considering the advantages of candlestick charting

Examining a few potential candlestick problems

Checking out the competition: Line, bar, and point and figure charts versus candlesticks

Ever wonder why a trader or investor would choose candlestick charts over other types of charts when analyzing price action of investments or markets? Well, this chapter provides some answers.

Trading and investing aren’t easy undertakings, and they’re certainly not easy professions. Most traders — professional and amateur alike — and investors struggle just to keep up with the market’s performance as measured by the Standard & Poor’s 500 index (S&P 500). The S&P 500 is an index comprised of 500 of the largest stocks traded in the United States and is considered to be representative of the stock market as a whole.

To be one of the successful few who beat the market and other market participants, you should strive to develop a competitive advantage or some unique insight, commonly referred to as your edge, that you believe most market participants aren’t using or considering. I can’t say that using candlestick charting provides an edge by itself — and I have to say that it does come with a couple of potential problems. But when you combine it with recurring patterns and other technical indicators, you can find your edge!