In the field of trading, I am sure all of you should know the candlesticks and technical indicators provided in trading charts. Many of us have our own unique style of trading the market. Often those who used technical analysis, most definitely or likely will be using candle charts.
Candlestick charts provide much more information and is pictured easily for traders to identify candle stick patterns. These candlestick patterns allow traders to spot turns before potentially large moves. For technical indicators, it is a reflection of the movement of the past candles and provides another wealth of information on past history patterns of the market.
So you may be thinking, do I stick to just candlestick trading or using just technical indicators for analysis? Well, for a start, most people are using candlesticks in a wrong manner. One of the most dangerous and misuses of candlesticks is trying to use them as a standalone trading system. Candlestick by itself is just a trading tool and not a trading system. That is why there shouldn't be a preference of candlestick or technical indicators.
Both of them must be used together to gather information and also as confirmation for your intended trades. Well it is true that some people whom I've met are better at just using one of these tools but it is just the minority. If you are just starting out, you may want to incorporate both of these tools into your trade analysis where you will be sharpening your foundation in recognizing common candlestick trend reversal patterns together with technical indicators patterns.
With experimentation through your demo account, you can find out a set of suitable technical indicators that you are comfortable in applying to your trade. Candlestick patterns and technical analysis not only helps you in identifying trade entries but also trading exits. These trading exit strategies must be learned and developed by you to suit your trading plan.
Though in general, there are many ways to formulate your exits like for example having a take profit target or shifting your stop loss manually closer to the price action in order to secure profits, it is often a tedious way to do.
Having the combination of candlesticks and technical analysis, you can pick out the perfect spot to exit your trade without risking too much of your profit lost to the market and riding the trend till it dies out.
So in short, always have your foundation built up in candlestick patterns and technical analysis, experimenting with several combinations to develop your set of entries and trading exits strategies.
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