Yet, as just discussed, the candles offer many advantages over bar charts, so using candle charts instead of bar charts is a win-win situation. Candle charts are drawn using the same data as bar charts (the open, high, low, and close), so they send all the same signals that can be found on charts.
In just a few years, candle charts have joined bar charts and point and figure charts as a basic charting technique. These are just some reasons why the flames of interest in candle charts grow ever brighter. The result is that candle charts often provide the opportunity for more timely trades. However, candle charts will often send out clues of imminent reversals in one to three sessions. *Bar chart techniques can often take weeks to transmit a reversal signal. *Like bar charts, candle charts will show the trend of the market, but candle charts add another *dimension of analysis by revealing the force behind the move. Candle charts display a more detailed and accurate map of the market than do bar charts.Ī Japanese book that I had translated stated, “It is not an exaggeration to say that candlesticks are the best in the world and a very exquisite creation for charts.”l This is because, as detailed below, candle charts open new avenues of analysis and offer many advantages over bar charts:Ĭandle charts will pictorially display the supply-demand situation by showing who is winning the battle between the bulls and the bears.
A chart is like a map, the more information each one provides, the better the chance of reaching your destination safely.
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