Introduction to Candlestick Analysis
Candlestick analysis? Is it an analysis on candle holder? Sorry, the candlestick that I’m talking about now is not the holder for candle but it is a technical analysis for trading.
What is candlestick Analysis?
The first time I came across the words “candlestick analysis” was the time I learn about Forex trading. This is a kind of famous technical Analysis that using a special charting, usually called candlestick charting, to predict the trend of the market.
Candlestick charting originate from Japan and the first candlestick charting appeared sometime after 1850. This system was developed by a rice trader in Japan, Homma. After some modification and refining, this old trading system was transformed to become today Candlestick Charting.
Many traders are using this technique to detect and predict the market trend. From my own experience, in most cases, the results are quite accurate. This is why I want to introduce this technical analysis to you and if possible, please spend some time to learn it. It definitely will be a weapon for you to achieve financial freedom. At least it can help you to make money from trading. 
Where to learn Candlestick Analysis?
Now I think you are ready to learn what candlestick analysis about. I already did some research over the internet and found some sites that might help you on this.
Stockcharts.com – This is the most completed and free simple course that I can find from the internet. In this site, you can learn about the history, formation of candlestick chart and some candlestick signal that you must learn to predict the market trend. This is quite a complete site.
TradingDay.com - Under the candlestick tutorial, you can learn more about candlestick. Besides that you can also learn the daily and weekly candlestick play instruction. All details and explanations are there to make you clear with the chat and theory.
Candlestickshop.com – This actually a page that contain the glossary for candlestick. The page is simple and I think this can be your quick reference site.
Japanese Candlestick Charting Techniques, by Steve Nison – I learn the candlestick through this book. Actually this book was given by my mentor. Inside there the explanation is detail and come with a lot of example. So far I found that this is a good book or candlestick dictionary that you can keep for your trading.
Volume, what it means to you in stocks trading
According to Balin Reinkensmeyer from falkininvesting.com, Volume is one the most basic concept that you must understand when trading stocks.
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Volume is defined as the number of shares or contracts traded in a security or an entire market during a given period of time (investopedia.com)
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An example that Balin gave in his article is:
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Think about it, Stock XYZ is trading at $10 per share, and you decide to buy 100 shares. Right upon purchasing those 100 shares, you’ve increased the total volume for that stock by 100. So, I go buy 500 shares, upon this then the total volume increases by 500. But what if someone sells? Still counts because they are shares exchanged, so if Tim decides to sell 5,000 shares at $10 per share, well the volume increases by 5,000 more. This tally is added throughout the day to give you the total daily volume.
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Now the benefit of knowing the volume of a stock is:
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By knowing the total volume on a day, you can understand the power of influence on a given stock. The greater the volume, the greater the influence for the price to change.
If you know how to read a volume of a stock, you can predict when it can break a resistance line and thus you can plan your investing strategy accordingly.
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For more information please visit Falkininvesting.com
Technical Analysis - Web tutorial on candlestick analysis
I learned about candlestick last year when I involved myself in Forex Trading. At that time, I found that it is not easy to be a pro-investor that has the abilities in technical analysis. But anyway I believe that as long as you pay your time, be patient, then we can master it one day.
So first of all, how about you go to this web site : http://www.stockcharts.com/education/ChartAnalysis/candlesticks.html to learn some proven trends in the market for reversal signal. Knowing the signal that the graph giving you will help you making decision when to enter and when to exit. For here you can build a more exact enter and exit strategy.
