Candlestick Charting For Dummies

Demystify stock charts so you can up your investing game

Candlestick Charting For Dummies is here to show you that candlestick charts are not just for Wall Street traders. Everyday investors like you can make sense of all those little lines and boxes, with just a little friendly Dummies training. We'll show you where to find these charts (online or in your favorite investing app), what they mean, and how to dig out valuable information. Then, you'll be ready to buy and sell with newfound stock market savvy.

Candlestick Charting For Dummies helps you build a foundation of investing knowledge and lingo (bullish? bearish? What is a candlestick, anyway?), then shows you the chart-reading ropes with relevant and easy-to-understand examples. It covers the latest investing technology, cryptocurrency, and today's somewhat-less-predictable market environment.

• Get a refresher on stock market terminology and investing basics
• Discover how easy it is to understand price history and movement with candlestick charts
• Identify the best times to buy and sell securities, including stocks and crypto
• Learn from real life examples so you can invest with greater confidence and success

This is the Dummies guide for beginner and intermediate investors who want to make smarter decisions with a better understanding of how to read candlestick charts.

Auteur

*Russell Rhoads, PhD, is head of research at EQDerivatives and an Associate Clinical Professor at the Kelley School of Business at Indiana University. He has over three decades of experience focusing on trading and the financial markets. Rhoads is the author of the previous edition of *Candlestick Charting For Dummies.

Texte du rabat

Demystify stock charts so you can up your investing game Candlestick Charting For Dummies is here to show you that candlestick charts are not just for Wall Street traders. Everyday investors like you can make sense of all those little lines and boxes, with just a little friendly Dummies training. We'll show you where to find these charts (online or in your favorite investing app), what they mean, and how to dig out valuable information. Then, you'll be ready to buy and sell with newfound stock market savvy. Candlestick Charting For Dummies helps you build a foundation of investing knowledge and lingo (bullish? bearish? What is a candlestick, anyway?), then shows you the chart-reading ropes with relevant and easy-to-understand examples. It covers the latest investing technology, cryptocurrency, and today's somewhat-less-predictable market environment. Get a refresher on stock market terminology and investing basics Discover how easy it is to understand price history and movement with candlestick charts Identify the best times to buy and sell securities, including stocks and crypto Learn from real life examples so you can invest with greater confidence and success This is the Dummies guide for beginner and intermediate investors who want to make smarter decisions with a better understanding of how to read candlestick charts.

Contenu

Introduction 1

About This Book 1

Foolish Assumptions 2

Icons Used in This Book 2

Beyond the Book 3

Where to Go from Here 3

Part 1: Getting Familiar with Candlestick Charting and Technical Analysis 5

Chapter 1: Understanding Charting and Where Candlesticks Fit In 7

Considering Charting Methods and the Role of Candlesticks 8

Getting a feel for your options for charting 8

Realizing the advantages of candlestick charting 9

Understanding Candlestick Components 9

Working with Candlestick Patterns 11

Simple patterns 11

Complex patterns 12

Making Technical Analysis Part of Your Candlestick Charting Strategy 12

Trading Wisely: What You Must Understand Before Working the Markets 13

Trading can be an expensive endeavor 13

Paper trading costs you nothing but time 14

Develop rules, and stick to them 14

Chapter 2: Getting to Know Candlestick Charts 17

Recognizing the Many Benefits of Candlestick Charting 18

Seeing is believing: Candlesticks are easy to read 19

Spotting bears and bulls quickly 20

Seeing into the future (sort of) 21

Showing price patterns 23

Admitting Potential Candlestick Charting Risks 25

Comparing Candlestick Charts with Alternative Charting Methods 26

Line charts 26

Bar charts 27

Point and figure charts 28

Chapter 3: Building a Base of Candlestick Chart Knowledge 31

Constructing a Candlestick: A Core of Four 32

Price on the open 32

High and low prices for the session 35

Price on the close 37

Considering Additional Information Included in Candlestick Charts 39

Volume 39

Open interest 40

Technical indicators 42

Fundamental information 43

Chapter 4: Using Electronic Resources to Create Full Charts 49

Turning to the Web for Candlestick Charting Resources 50

Using Yahoo! Finance 50

Working with Barchart 53

Charting on CNBC.com 54

Creating Candlestick Charts with Microsoft Excel 55

Finding the data for your chart 56

Making sure that the data is in the correct format 56

Building an Excel candlestick chart 57

Adding a moving average to an Excel candlestick chart 58

Adding a trendline to an Excel candlestick chart 60

Adding volume data to an Excel candlestick chart 61

Selecting Charting Packages and Apps 63

Remembering a few key points when selecting charting software 64

Considering a few charting package options 65

Part 2: Working with Simple Candlestick Patterns 69

Chapter 5: Working with Straightforward Single-Stick Patterns 71

The Bullish Long White Candle 72

Understanding long white candles 72

Identifying the three variations of the long white candle 76

The Bullish Dragonfly Doji 78

Recognizing a dragonfly doji 79

Trading based on a dragonfly doji 80

The Bearish Long Black Candle 82

Understanding long black candles 82

Identifying the three variations of the long black candle 84

Trading based on long black candles 85

The Bearish Gravestone Doji 89

Identifying the gravestone doji 89

Trading based on gravestone dojis 90

Chapter 6: Single-Stick Patterns That Depend on Market Context 93

Understanding Market Environments 94

Recognizing the three market states 94

Identifying the market trend 94

Delving into Dojis 96

The long legged doji 96

Other dojis 101

Looking at Other Patterns: Spinning Tops 105

Identifying spinning tops 105

Using spinning tops for profitable trading 106

Discovering More about Belt Holds 109

Spotting belt holds on a chart 109

Buckling down for some belt hold-based trading 110

Deciphering the Hanging Man and the Hammer 113

Spotting the hanging man and the hammer 114

Trading on the hanging man and the hammer 114

Chapter 7: Working with Bullish Double-Stick Patterns 119

Bullish Reversal Patterns 120

Bullish engulfing pattern 120

Bullish harami 124

Bullish harami cross 127

Bullish inverted hammer 129

Bullish doji star 132

Bullish meeting line 135

Bullish piercing line 136

Bullish Trend-Confirming Patterns 139

Bullish thrusting lines 139

Bullish separating lines 142

Bullish neck lines 144

Chapter 8: Using Bearish Double-Stick Patterns 149

Understanding Bearish Reversal Patterns 149

The bearish engulfing pattern 150

The bearish harami pattern 153

The bearish harami cross pattern 155

The bearish inverted hammer pattern 158

The bearish doji star 160

The bearish meeting line 162

The bearish piercing line or dark cloud cover pattern 165

Making a Profit with Bearish Trend Patterns 168

The bearish thrusting lines 168

The bearish separating lines 171

The bearish neck lines 174

Part 3: Making the Most of Complex Patterns 177

**Chapte…