Candlestick patterns are very popular tool in trading, and because of their catchy names and easily recognizable shapes, they are one of the most powerful tools a trader can use.
Being said that, It doesn’t mean that once you understand candlestick patterns,you will never loose any of your trade ever again. Please note that there is no 100% sure-shot success strategy in market and if you’re looking for one,I have a bad news for you that you have wasted your money on buying this book or anything else for that matter.
In trading, you are bound to loose some and win some. The purpose of understanding candlestick patterns is to tilt the favour towards winning side.
The candlestick patterns that I’m going to show you here are the most important patterns that you will find in the market and if you understand the market psychology behind each one of it, you will definitely able to trade better going forward.
Before getting into details, lets answer first why does the price of something goes up or down?
In the most simplest terms, Price goes up when we have more number of people ready to buy it instead of selling it and the price goes down whenever there are more number of people ready to sell it instead of buying. This is the basic principle of demand-supply.