I mean, it is always worth learning something new. I already put an effort into finding reliable materials and even instructions on YT to learn how to read Candlestick charts. And simply I donāt get itā¦ so many patterns!
I went through a few similar topics here. I was wondering if Candlestick charts are actually useful for my strategy and I found contradictory information.
Iām aiming for long-term investments, but currently 54% in ETFsā¦ And wanted to use candlesticks to āpredictā the best time for buying stocks.
Am I correct in thinking that actual patterns will help me to decide when to buy (and eventually sell)? Are there any helpful websites I could use to understand those Candlestick charts? Iām starting to feel dumb for not understanding them!
Charts arenāt just random lines, to quote one of my favourite analysts they represent:
āThe net aggregate opinion of all market participants, current trends, and current data incorporate every conceivable piece of fundamental data, including valuations, on every conceivable timeframe.ā
All known fundamental data is reflected in the charts.
Like Cameron said, itās essentially psychology. It works sometimes because people believe it works and act accordingly, nothing to do with charts or stocks. Itās kinda crazy if you think about it (self fulfilling prophecies). But as long term investor it doesnāt make any sense at all.
Yes, but how does that help with forward information? The current price may reflect all current information, but it doesnāt tell you tomorrowās news.
Even if we take the hypothesis that there are patterns that can be identified that predict future outcomes then machines could near instantly capture this value.
Also technical analysis is analysing the past, not predicting the future. all you are doing is looking at how market participants acted in the past and assessing probability that they will behave in a similar way in the future.
If you are expecting a certain pattern to always lead to the same outcome you are doing it wrong.
It isnāt predicting the future but I take issue with saying that analysing the past is worthless
As a long term investor itās not important. There are some Technical KPIs which can be combined with market commentary to help you gain a view of the market conditions however candlestick analysis is not it. Candlestick analysis is most suited to traders who will buy and sell frequently.
