Don’t make this mistake using Candlestick Patterns

– Candlestick patterns and how I use them

o These are used to confirm market sentiment

o They do NOT tell me when to enter or exit the trade

o They do not tell me anything more than the DIRECTION I should be trading.

– Lets define sentiment:

– Use this video to put this all together

– Patterns we see:

o Candlestick body is large = strong market

o Body = narrow = weak market

– Bear Hammer = Sellers in charge

– Bull Hammer = buyers in charge

– The size of the body tells the story.

How do we avoid slippage?

– You can never completely avoid missing some ticks from slippage.

– owHow trading during the highest volume times

– trading at the most popular/obvious price levels (HOD/LOD)

– Limit orders for entry, does not enter at whatever the market offers you. It guarantees your price.

– Buy at bid and sell at the ask is good technique, but it requires a lot of practice