If you are like me still trying to comprehend this form of charting, I suggest that you don’t over stuff your head with things that you don’t really understand. Keep it as simple as possible.
Yes I know it makes you envy people talking in forums, chatrooms, Facebook groups, and other on the live seminar who has this wide open eyes and lots of interjection when ascending triangle pattern, flags and pennant pattern, doji, hammer, engulfing pattern and other patterns are mentioned in the conversation while you are browsing your stock investing for dummies book to catch up. And all you do is nod your head as if you know what they are talking about. When you are by yourself at home you search the world-wide web and read this sites and after browsing to 15 minutes your nose starts to bleed.
In order to keep up with all these at your pace you got to find materials that is within your understanding level first. This is not to belittle yourself but rather this is in order to avoid yourself from over analyzing things. Start from explanations consisting of only two to four paragraphs with only few technical terms in it. Then when you begin to comprehend the basic it’s time to watch video tutorials. Video tutorials are powerful learning tools because the human mind retains more of the visual presentation rather than the written words. Also by way of example our minds easily grasp the idea.
I found one site with one page of all the possible candlestick patterns with a short explanation. Check out StockCharts.com’s Candlestick Pattern Dictionary by clicking here.
source: http://stockcharts.com
And lastly if you still can’t clearly comprehend these patterns ask a friend who actually understands these chart patterns. It would be best if you have a one-on-one and face-to-face discussion because you get to see how your friend sees these patterns.
Hello Louis,
I have been using technical analysis for many years, and you know what? I never memorized all those candlestick patterns and their names. I do know many of these patterns and their names, but it is not necessary. What is necessary, though, is for you to identify these patterns (some, not all) - without knowing their names and all the jargons - when they occur on the chart.
If you look at the charts on my blog, http://www.tradingphoenix.net , you will never find me talking about candlestick pattern names, and you will never see them on my charts.
What is important is to understand what price is doing or where it is possibly headed.
A simple analogy would be… a journey to your ever-lovely grandmother who lives in a far-flung province. You may not know the street names or building names (candlestick patterns), BUT you know how to reach your lola’s house.
I hope this helps you and your readers.
thanks for the input, yes it is not the names that matter but rather knowing what it is and what pattern does is what matters 🙂